Pakistan’s stock market fell sharply on Monday as rising global tensions and higher oil prices triggered heavy selling across major sectors.
The benchmark KSE-100 Index dropped nearly 4%, closing at 160,591.33, down by 6,600.04 points from the previous session.
The market came under pressure after talks between the United States and Iran ended on Sunday without any agreement.
Reports of a possible US naval blockade targeting Iranian ports, including the Strait of Hormuz, further increased fears in global markets. As a result, oil prices jumped sharply by around 8%.
According to the Pakistan Stock Exchange (PSX), the KSE-100 Index opened on a negative note and quickly fell to an intraday low of 161,638.07, losing 3.3% in early trading before extending losses throughout the session.
Selling was seen across almost all major sectors, including automobile, cement, banking, oil and gas exploration, oil marketing companies, power generation, and refineries.
Key index-heavy stocks such as OGDC, PPL, POL, PSO, MARI, HUBCO, ARL, SSGC, and SNGPL all closed lower.
Global markets also reacted strongly. Brent crude oil rose to $103 per barrel, while the US dollar strengthened against major currencies. Futures of the S&P 500 fell 1% in early trade, showing rising investor caution worldwide.
Earlier, the market had gained on optimism from diplomatic talks, but the latest geopolitical developments reversed sentiment quickly.
Asian markets also declined, including Japan’s Nikkei, South Korea’s KOSPI, and Australia’s S&P/ASX 200, as investors moved towards safer assets amid uncertainty.