KARACHI: The Pakistan Stock Exchange (PSX) came under renewed selling pressure on Monday as escalating US-Iran tensions unsettled investors, sending the benchmark KSE-100 Index down more than 400 points during early trading.
At around 9:40am, the KSE-100 Index stood at 177,242.03 points, down 454.47 points, or 0.26%, from the previous close.
Selling pressure was visible across several major sectors, including automobile assemblers, cement, commercial banks, oil and gas exploration companies, oil marketing companies and power generation firms.
Major stocks including HBL, MCB, MEBL, MARI, OGDC, PPL, PSO and HUBCO were trading in negative territory during the early session.
The market had remained largely range-bound during the previous week. The KSE-100 gained around 530 points, or 0.3%, to close at 177,696.52 points, as investors remained cautious over the US-Iran standoff and uncertainty surrounding the possible reopening of the Strait of Hormuz.
Global tensions weigh on PSX
The latest decline in Pakistani equities came amid a broader sell-off across Asian markets following renewed military confrontation between Washington and Tehran.
Heightened geopolitical risks pushed global crude prices higher, while rising bond yields added to concerns over the international interest-rate outlook.
Brent crude futures rose 1.4% to $89.38 per barrel after reports that US forces had struck two Iranian launchers on Larak Island.
Higher oil prices could have wider implications for oil-importing economies, including Pakistan, while continued geopolitical uncertainty may keep investors cautious.
Global markets under pressure
Asian stock markets also faced significant selling pressure amid the heightened tensions.
Japan’s Nikkei declined around 2.1%, while South Korean stocks fell 2.4%. MSCI’s broadest index of Asia-Pacific shares outside Japan also dropped around 0.7%.
The geopolitical developments have also influenced expectations surrounding US monetary policy, with investors reassessing the outlook for interest rates.
Market participants are closely watching upcoming US employment and inflation data for clues about the Federal Reserve’s next move.
Investors remain cautious
The combination of geopolitical uncertainty, higher crude oil prices and elevated bond yields has created additional challenges for global markets.
At the PSX, investors are now closely monitoring developments in the Middle East, movements in international oil prices and changes in global interest-rate expectations.
These factors are likely to remain important drivers of market sentiment and could determine the direction of the KSE-100 Index in upcoming trading sessions.
