KARACHI – The Pakistan Stock Exchange (PSX) witnessed one of its steepest single-day declines in recent months on Monday, as the benchmark KSE-100 index plunged 3,855 points, closing at 116,167 amid rising geopolitical uncertainty stemming from Middle East tensions.
The sharp downturn, representing a 3.21% loss, came in response to growing fears over the escalation of conflict between Iran and the United States following reported airstrikes and threats to international oil routes, including the vital Strait of Hormuz. Investors rushed to offload risk-heavy positions, triggering a broad-based sell-off across major sectors.
At one point, the index had fallen over 4,100 points intraday before recouping some of the losses by market close. Analysts noted that the slide pushed the index below critical support levels, indicating eroding investor confidence.
Heavyweight sectors, particularly oil & gas, cement, and fertiliser, bore the brunt of the downturn. Key stocks like Oil & Gas Development Company, Pakistan Petroleum, Engro, Mari Petroleum, and Lucky Cement collectively contributed to over 1,000 points lost from the index.
Trading activity surged as panic gripped the market. A total of 595 million shares were traded, marking a 41% increase in volume from the previous session. The total traded value also rose by 50%, hitting Rs 23.48 billion. WorldCall Telecomemerged as the volume leader, with over 53 million shares changing hands.
Market experts warn that continued uncertainty in global oil markets and potential disruptions to regional trade routes could exert further downward pressure on the PSX in the coming days. However, they also note that easing tensions or diplomatic breakthroughs could lead to a swift market correction.
Reported by PakTribune Business Desk
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