Karachi – The Pakistan Stock Exchange (PSX) recorded a sharp decline on Monday as investor sentiment weakened amid rising global tensions. The benchmark market index dropped more than 11,000 points during trading.
The PSX faced heavy selling pressure shortly after the market opened. Investors rushed to sell shares due to fears of disruptions in global energy supplies and trade routes. The benchmark KSE-100 Index fell by about 7.06%, reflecting strong market volatility.
According to official data from the PSX, the KSE-100 Index dropped to 146,383.61 points by early afternoon. The index had closed at 157,496.10 points in the previous trading session. The sudden fall caused panic among investors and triggered a temporary market halt.
The PSX suspended trading after the KSE-30 Index declined by 5% from its previous close. Under exchange regulations, this threshold automatically pauses equity trading to prevent further panic selling.
Market analysts said the sharp decline was linked to global financial uncertainty. Investors reacted strongly after the United States and Israel carried out military strikes against Iran. The ongoing conflict has raised fears about the stability of oil supply from the Middle East.
Global oil prices surged past $100 per barrel following the escalation. Both Brent crude and West Texas Intermediate jumped significantly in international markets. Energy prices had already risen sharply in the previous week due to geopolitical tensions.
Reports indicate that oil prices climbed nearly 30% and approached $120 per barrel at their peak. European gas prices also surged by about 30% as markets reacted to the conflict. Rising energy costs are increasing fears of inflation and slower global economic growth.
International stock markets also experienced losses as investors moved toward safer assets. Analysts believe concerns about expensive technology stocks and heavy spending on artificial intelligence have also affected investor confidence.
Meanwhile, political statements have added to market uncertainty. Donald Trump said that the rise in oil prices is a temporary effect of the ongoing conflict. He added that ending Iran’s nuclear threat was worth the economic pressure.
In other news read more about PSX Plunges Over 15,000 Points Amid Rising Geopolitical Tensions
Financial experts warn that the PSX could remain volatile in the coming days. Much will depend on global oil prices and the future course of the Middle East conflict. Investors are expected to monitor international developments closely before making new investment decisions.
