PSX falls more than 2,400 points as war fears unsettle investors

ISLAMABAD: The Pakistan Stock Exchange remained under pressure during trading on Monday morning as investor sentiment weakened amid rising geopolitical tensions and a jump in oil prices.

By 11:34am, the benchmark index had dropped to 148,027.32, showing a decline of 2,371.39 points, or 1.58%, from the previous close of 150,398.71. During the session, the market moved between a high of 151,453.80 and a low of 147,882.03.

Trading volume reached 78,091,453 shares, while the total value of traded shares stood at 7,158,008,761. The market’s continued decline pointed to sustained selling activity, with cautious sentiment dominating the session.

The pressure on equities came as escalating tensions involving the United States, Israel and Iran unsettled investors. Sentiment was shaken after US President Donald Trump threatened ‘hell’ if Iran keeps the Strait of Hormuz shut, increasing concerns around the conflict and fuelling fresh anxiety in global markets.

Those tensions also affected oil markets, where prices rose sharply on fears of supply disruptions through the Strait of Hormuz, a key route for global energy shipments. The increase in crude prices added to the pressure on stocks and reinforced the selling trend at the PSX.

AKD Securities Director Research Mohammed Awais Ashraf said investors were watching the regional conflict closely and linked the market’s weakness to the surge in oil prices and disruption in Gulf trading. "Investors are cautious about the conflict between the US, Israel, and Iran, which has caused oil prices to surge to record highs and Gulf trading to halt due to the Strait of Hormuz closure," he added.

Ashraf also said United Bank Limited contributed the most to the index’s losses in Monday’s trading because of its higher surplus on revaluation of assets, which he said was exposed to risk after the recent increase in secondary market yields.

Later in the session, the KSE-100 index remained under selling pressure. By 12:04pm, it was recorded at 147,950.50, down 2,448.21 points, or 1.63%, while trading was still in progress at the time of filing.

The session followed broader concerns in the market over the impact of the oil shock and regional instability, with investors appearing to adopt a cautious approach as uncertainty persisted.