The Pakistan Stock Exchange (PSX) experienced a sharp 3700-point dip on Monday as investors reacted to escalating conflict in the Middle East. The surge in geopolitical tensions sparked a widespread selling spree.
During intraday trading, the KSE-100 index fell 3,793.82 points, or 2.5 percent, closing at 147,913.69 points. Analysts fear further declines could occur if the situation in the region worsens.
In the previous session, the benchmark index had already dropped 1,200.45 points, or 0.79 percent, ending at 151,707.52 points. This marks a consecutive decline over two trading sessions, reflecting growing investor uncertainty.
Out of 478 active companies in the ready market, 126 saw gains, 287 experienced losses, and 65 remained unchanged. The majority of declines were concentrated in energy, banking, and technology sectors.
Global markets mirrored similar trends, as oil prices surged on fears of U.S. involvement in the Middle East conflict. West Texas Intermediate crude jumped 3.0 percent to $102.61 per barrel, while Brent crude rose 3.2 percent, reaching $116.15 per barrel.
The rising energy costs contributed to further selling pressure at the PSX. Analysts warn that continued instability in the Middle East could intensify market volatility and extend the downward trend.
This 3700-point dip highlights the sensitivity of Pakistan’s financial markets to global geopolitical events. Investors are advised to monitor developments closely and consider cautious trading strategies amid uncertain conditions.
Experts note that if the conflict escalates further, more significant losses could be seen in both local and international stock markets. The PSX remains vulnerable to external shocks as oil prices continue to climb.
Overall, Monday’s trading session underscores the strong link between geopolitical risk, energy prices, and investor confidence. The 3700-point dip serves as a reminder of the challenges faced by Pakistan’s financial markets during periods of global instability.
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