KARACHI – The PSX faced a sharp decline on Monday as geopolitical tensions in the Middle East rattled investor confidence.
The KSE-100 index fell by 15,071.01 points, closing at 152,991.15 points. This marked a drop of 8.97 percent from the previous close of 168,062.16 points. Analysts said uncertainty following the death of Iran’s Supreme Leader, Ayatollah Ali Khamenei, in an airstrike contributed to the sell-off.
Investors reacted cautiously as the ongoing conflict between Iran, the US, and Israel fueled fears of economic instability. The sharp decline at the PSX reflects growing concerns about global markets and potential disruptions in trade and energy supplies.
Meanwhile, Brent crude prices surged to new highs, highlighting the link between conflict and commerce. Rising oil costs added pressure on the market as investors anticipated higher fuel prices and supply constraints.
Recent attacks on vessels in the Strait of Hormuz, a key shipping route for Middle Eastern oil, intensified concerns. Nearly 20 percent of global oil passes through this waterway, making it critical for international energy trade. Traders fear that further disruptions could restrict crude supply and push prices even higher.
Market experts warn that sustained instability in the region may continue to impact the PSX in the short term. Companies linked to energy, transport, and exports are particularly vulnerable to rising costs and supply chain uncertainties.
Despite the dramatic fall, some investors see the decline as a potential buying opportunity, believing that long-term fundamentals in Pakistan’s stock market remain intact. Brokers continue to monitor global developments closely while advising caution.
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As the situation evolves, the PSX will likely remain sensitive to geopolitical news and fluctuations in international oil markets. Analysts emphasize the importance of investor vigilance during these uncertain times.
