KARACHI – Pakistan Stock Exchange (PSX) opened in red on first day if the week as escalating tensions in the Middle East shook investor confidence, sending the benchmark KSE-100 Index sharply lower in early trading.
Within minutes of market opening, the index tumbled close to 1,500 points, showing widespread panic selling across key sectors. Before noon, the benchmark was hovering at 152,480, marking decline of 0.90%, as investors rushed to reduce exposure amid rising geopolitical uncertainty.
The sell-off was broad-based, hitting major sectors including automobile assemblers, cement manufacturers, commercial banks, and power generation companies. Heavyweight stocks such as HUBCO, INDU, LUCK, HBL, MCB, and MEBL were all trading deep in the red, amplifying the market’s downward momentum.
The latest drop extends painful streak for PSX. During previous week, the KSE-100 Index already suffered significant setback, falling 3,629.92 points on a week-on-week basis, a 2.3% decline, to close at 153,866.17. Analysts link persistent pressure to combination of global geopolitical tensions, domestic security concerns, and ongoing macroeconomic uncertainty, all of which have dampened investor sentiment.
As of now, EU members are meeting to discuss strengthening limited naval mission in the Middle East. However, any operation in the Strait of Hormuz is considered highly risky given the escalating regional tensions. Oil markets mirrored the uncertainty. Brent crude climbed 0.8% to $104.01 per barrel, while West Texas Intermediate slipped 0.2% to $98.48.
Meanwhile, global financial markets are bracing for a critical week of monetary policy decisions. Central banks in the United States, United Kingdom, Europe, Japan, Australia, Canada, Switzerland, and Sweden are all holding their first full policy meetings since the start of the conflict, with soaring energy prices expected to dominate the discussions.
Asian markets reflected the cautious global sentiment. Japan’s Nikkei 225 dropped 0.8%, while South Korean equities edged up 0.2% after both markets ended last week in negative territory. Meanwhile, MSCI Asia Pacific Index slipped 0.1%.
With geopolitical tensions rising and economic uncertainty deepening, investors remain on edge, and the coming days could prove decisive for markets both in Pakistan and around the world.
Bloodbath at PSX as KSE-100 crashes over 6,100 points on global fears
