KARACHI: The Pakistan Stock Exchange (PSX) came under significant selling pressure on Monday as renewed tensions in the Middle East unsettled investors, sending the benchmark KSE-100 Index down by more than 700 points.
The market opened the first trading session of the week on a negative note, with the benchmark index dropping more than 600 points in early trading to around 177,066 points.
Selling pressure persisted during the session, preventing the market from staging a meaningful recovery.
By the close of trading, the KSE-100 Index had fallen 720 points to settle at 176,975 points.
The benchmark index had closed the previous trading session at 177,696 points, indicating a notable deterioration in sentiment at the start of the new week.
The decline came amid renewed geopolitical uncertainty in the Middle East, which weighed on investor confidence and encouraged a cautious approach in the equity market.
Geopolitical tensions are closely watched by investors because any escalation in the Middle East can affect international oil prices, global financial markets and risk appetite.
For Pakistan, movements in global energy markets remain particularly important because the country depends heavily on imported fuel. A sustained rise in international oil prices can increase pressure on the import bill, inflation and the rupee.
Monday’s decline therefore reflected growing caution among investors as they assessed the possible economic consequences of fresh regional uncertainty.
The market’s performance in the coming sessions is likely to remain sensitive to developments in the Middle East as well as domestic economic indicators and investor expectations.
