Negative sentiments were observed at the Pakistan Stock Exchange (PSX) over the risk of a long war in the Middle East. The benchmark KSE-100 Index lost over 1,500 points during the opening minutes of trading on Monday.
At 9:40am, the benchmark index was hovering at 150,157.99, a decrease of 1,549.52 points or 1.02%.
Selling was observed in key sectors, including automobile assemblers, cement, commercial banks, oil and gas exploration companies, OMCs, power generation and refinery. Index-heavy stocks, including ARL, HUBCO, MARI, OGDC, PPL, HBL, MEBL, MCB and NBP, traded in the red.
Pakistan said it was preparing to host “meaningful talks” to end the conflict over Iran in the coming days, even though Tehran earlier accused Washington of preparing a land assault as the U.S. military sends more troops to the region.
During the previous week, PSX remained volatile and directionless as escalating regional tensions, sharp swings in international oil prices and tightening monetary conditions continued to weigh on investor sentiment, resulting in another weekly decline.
The benchmark KSE-100 Index closed the week at 151,707.52 points, down 1,032.85 points or 0.7% week-on-week.
Internationally, stock markets slumped in Asia on Monday as investors dug in for a protracted Gulf conflict that already has oil prices heading for a record monthly rise, bringing a spike in inflation and the risk of recession to much of the globe.
The Financial Times on Sunday quoted President Donald Trump saying the US could seize Kharg Island in the Persian Gulf, from where Iran exports much of its oil, but also that a ceasefire could come quickly.
Yemen’s Iran-aligned Houthis also launched their first attacks on Israel since the start of the conflict.
The clampdown on the Strait has sent prices for oil, gas, fertilizer, plastic and aluminium surging, along with fuel for planes and shipping. Prices for food, pharmaceuticals and petrochemical products are all set to rise.
That is bad news for Asia, as much of the region is highly dependent on energy from the Middle East. Japan’s Nikkei shed another 4.7%, bringing losses for March to almost 14%.
South Korea’s market fell 4.2%, while MSCI’s broadest index of Asia-Pacific shares outside Japan dropped 1.2%.
S&P 500 futures lost 0.7%, while Nasdaq futures fell 0.9%.
For Europe, EUROSTOXX 50 futures and DAX futures both slid 1.5%, while FTSE futures fell 1.0%.
This is an intra-day update
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