PSX Plunges 2,541 Points as Oil Surge, Middle East Tensions Hit Sentiment
KARACHI, PAKISTAN — WEB DESK: The Pakistan Stock Exchange suffered another sharp sell-off on Monday, with the benchmark KSE-100 Index losing 2,541.20 points, or 1.49%, as escalating Middle East tensions and elevated international oil prices undermined investor confidence.
The KSE-100 settled at 167,970.65 points, down from the previous close of 170,511.85, according to market data. Business Recorder independently reported a virtually identical closing level of 167,970.65.
Trading remained volatile throughout the session. The benchmark reached an intraday high of 170,437.72 before selling accelerated later in the day, taking the index as low as 167,441.63. A modest late-session recovery was insufficient to erase the losses.
The decline was driven primarily by growing concern over instability in the Middle East and its implications for international energy supplies.
Topline Securities said investor confidence deteriorated after Oman announced the postponement of a scheduled meeting between Iran and Gulf countries concerning the Strait of Hormuz. The delay renewed fears of prolonged disruption around the strategically important oil-transit route.
Higher international oil prices compounded those concerns. For Pakistan, which depends heavily on imported energy, sustained crude prices above $100 a barrel can increase the import bill, fuel inflationary pressures and place additional strain on the external account. Business Recorder reported that oil above $100, attacks on Gulf shipping and the escalating US-Iran conflict weighed heavily on Monday’s trading.
Selling was widespread across major sectors, including commercial banks, cement, automobile assemblers, oil and gas, power generation and technology.
Among heavyweight stocks, UBL, FFC, Lucky Cement, OGDC and MCB collectively dragged the KSE-100 down by approximately 930 points, according to Topline Securities.
The latest decline extends a difficult period for Pakistani equities. During the previous week, the KSE-100 had already lost 4,816.95 points, or around 2.7%, as US-Iran tensions, attacks involving Saudi Arabia and the Houthis, maritime-security concerns and higher oil prices dominated investor sentiment.
The market had briefly recovered on Friday, September 11, climbing nearly 1% to 170,511.85 on hopes that Middle East tensions could ease. Monday’s 2,541-point fall erased that recovery and pushed the benchmark back below the psychologically important 168,000 level.
The latest market performance highlights Pakistan’s sensitivity to geopolitical shocks affecting energy markets. Investors are likely to continue monitoring oil prices, developments around the Strait of Hormuz and any diplomatic moves that could reduce regional tensions.
