The Pakistan Stock Exchange opened the week with a sharp decline, as the benchmark KSE-100 index plunged more than 15,000 points amid rising geopolitical tensions linked to the US-Iran conflict.
The KSE-100 index dropped to 152,991.15 points, down 15,071.01 points or 8.97 percent from the previous close of 168,062.16 points. The sharp fall triggered panic selling across the market.
Topline Securities CEO Mohammed Sohail said the decline was driven by panic selling, leveraged positions, and regional tensions involving Iran and Afghanistan. Independent investment and economic analyst AAH Soomro described the situation as “panic mode,” adding that the pressure could last for a few days. He noted that oil prices would be a key factor, suggesting that if prices fall below 80 dollars per barrel, the market could stabilize by the end of the week.
Following the steep drop, trading at the exchange was halted for 45 minutes before resuming later in the morning.
The sell-off came as military strikes by the United States and Israel on Iran intensified, with Iran responding through missile attacks across the region. The escalation has unsettled global financial markets.
In the Middle East, stock markets in the UAE and Kuwait were temporarily closed due to what officials described as exceptional circumstances. European markets also reacted negatively, with EUROSTOXX 50 futures falling 1.4 percent and DAX futures down 1.3 percent. In the United States, S&P 500 and Nasdaq futures both declined by 0.6 percent.
Oil prices surged sharply following the developments. Brent crude briefly jumped nearly 14 percent, while West Texas Intermediate rose close to 12 percent at the start of trading after reports of major attacks in Iran. Concerns have also grown over disruptions in the Strait of Hormuz, a key global oil route through which around 20 percent of the world’s seaborne oil passes.
The sharp rise in oil prices and fears of prolonged conflict have added to investor anxiety, contributing to heavy losses in equity markets, including Pakistan’s.
