The benchmark KSE-100 index at the Pakistan Stock Exchange (PSX) witnessed a sharp سقوط on Monday, dropping more than 4,800 points during intraday trading amid heightened geopolitical uncertainty.
NAB Summons SBCA Officials in Probe into Illegal Construction Approvals
The KSE-100 index fell by 4,864.54 points, or 3.21 percent, to close at 146,842.97, compared to the previous close of 151,707.51. The market initially showed positive momentum, reaching an intraday high of 151,813.61 shortly after opening at around 9:30am. However, selling pressure intensified, pushing the index down to an intraday low of 144,656.97 by 11:30am before recovering slightly by the close.
Market analysts noted that the recent downturn follows a 0.68 percent week-on-week decline last week, reflecting cautious investor sentiment. According to Topline Securities, inflationary pressures linked to tensions in the Middle East have begun impacting the broader economy, weighing on market performance.
The PSX has remained under pressure in recent sessions due to ongoing geopolitical instability and a lack of positive economic triggers. Although the market experienced a brief recovery earlier in the week, driven by ceasefire discussions and diplomatic efforts involving Pakistan and other nations, the gains proved short-lived.
With no significant breakthrough in negotiations, global markets continued to face volatility. Oil prices surged after Tehran rejected a proposal from the United States, while vessel movements through the strategically important Strait of Hormuz remained restricted, raising concerns over global oil supply disruptions.
Analysts expect market direction to remain closely tied to geopolitical developments, with investors likely to stay cautious in the near term.
