KARACHI: The Pakistan Stock Exchange came under heavy selling pressure on Monday, as escalating tensions between United States and Iran, coupled with a sharp rise in global oil prices, dampened investor sentiment.
The benchmark KSE-100 Index swung sharply during the session, touching an intraday high of 174,523.76 before plunging to a low of 169,226.56 — a steep decline of 4,712.45 points, or 2.71%, from the previous close of 173,939.01.
Market participants adopted a cautious stance amid renewed uncertainty surrounding US-Iran negotiations. Analysts pointed to geopolitical risks, rising government bond yields, and weakness in global equity markets as key drivers behind the bearish trend.
Ahsan Mehanti, CEO of Arif Habib Commodities, noted that investor confidence was shaken by the resurgence of tensions in the Middle East. He added that soaring crude oil prices and declining international markets further accelerated the sell-off.
Fresh concerns emerged after Esmail Baghaei stated that Tehran currently has no plans to engage in a second round of talks with Washington, casting doubt over the prospects of diplomatic progress. Reports from Iranian media also suggested that easing the US blockade remains a key condition for any future negotiations.
Oil markets reacted strongly, with prices surging after Iran reportedly reimposed restrictions in the Strait of Hormuz, citing ongoing US naval pressure. The development followed reports of a confrontation involving an Iranian vessel and a US warship, further heightening fears of escalation. Benchmark crude prices saw sharp gains, with WTI rising over 7% and Brent climbing more than 6% during the session.
The downturn comes after a strong rally in the previous session, when the KSE-100 Index had surged by over 4,000 points, closing at 173,939.01 on Friday.
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