KARACHI: Trading at the Pakistan Stock Exchange was halted on Monday after the market suffered a massive plunge of nearly 10,000 points amid rising global tensions linked to the Middle East conflict.
The benchmark KSE-100 Index dropped 9,780 points in early trading, falling to 147,715.95 points, a decline of 6.21%.
Panic Selling Hits Key Sectors
Investors rushed to pull funds from the market, leading to across-the-board selling in major sectors including:
Automobile assemblers
Cement companies
Commercial banks
Oil and gas exploration firms
Oil marketing companies (OMCs)
Power generation and refinery sectors
Major index-heavy stocks such as MCB, MEBL, NBP, MARI, OGDC, PPL, PSO, SNGPL, SSGC, and HUBCO traded sharply lower.
Oil Price Shock Behind Market Crash
The sell-off came as global oil prices surged nearly 30%, reaching around $118 per barrel, driven by the escalating US–Israel conflict with Iran.
Disruptions in the Strait of Hormuz, through which about 20% of global oil supplies pass, have triggered fears of prolonged energy supply shortages.
Several Middle Eastern producers, including Iraq and Kuwait, have already begun cutting oil output, while earlier liquefied natural gas reductions from Qatar added to the pressure.
Market Outlook
Analysts warn that continued conflict could keep energy prices elevated and create further volatility in global financial markets.
Even if the war ends quickly, experts say fuel prices and market uncertainty could persist for weeks or months due to disrupted logistics, damaged facilities and increased shipping risks.
Last Friday, the PSX had already closed sharply lower, with the KSE-100 Index falling by 3,714 points (2.30%) to settle at 157,496.10 points.
