KSE-100 index plunges over 4,300 points amid ongoing volatility

ISLAMABAD: Pakistan's benchmark KSE-100 index experienced a significant decline on Monday, falling by 4,360.66 points by 1:10pm. The drop represents a 2.83 percent decrease from the previous close of 153,866.16 points, marking a turbulent start to the trading week as selling pressure persisted in the market.

During the session, the index reached an intraday high of 153,943.69 points and a low of 149,385.39 points. This sharp downturn follows the index's seventh consecutive week of losses, with investor confidence remaining subdued.

According to market analysts, the continued volatility in Pakistani equities is being driven by several factors. The absence of positive economic developments and the ongoing delay in finalising a Staff-Level Agreement (SLA) with the International Monetary Fund (IMF) for Pakistan’s third review of its $7 billion Extended Fund Facility (EFF) have contributed to uncertainty in the market. Additionally, a recent surge in global oil prices has added to the pressure. The increase in oil prices was triggered by US-Israel military actions against Iran, which led to the closure of the Strait of Hormuz, a critical passage for global oil shipments.

Investor sentiment has also been affected by geopolitical tensions and caution ahead of the Eid holidays. As per a media report, these factors, combined with uncertainty surrounding the IMF agreement, have weighed heavily on the market, resulting in a tepid pre-Eid session and significant losses for the benchmark index.

The market's performance reflects broader concerns about the economic outlook and the impact of regional developments on Pakistan's financial markets. The ongoing volatility underscores the sensitivity of the KSE-100 index to both domestic economic policies and international geopolitical events.