Selling pressure was observed at the Pakistan Stock Exchange (PSX) amid escalating geopolitical tensions following the US attack on Iran, raising concerns among investors as the benchmark KSE-100 Index shed nearly 2,400 points during the intra-day trading on Monday.
At 1:50pm, the benchmark index was hovering at 117,653.74 level, a decrease of 2,369.49 points or 1.97%.
“Stocks in Pakistan open with a fall of 1700 points or 1.4% amid ongoing Iran-related tension,” Mohammed Sohail, CEO of Topline Securities, said in a note.
Across-the-board selling pressure was observed, especially in key sectors including automobile assemblers, oil and gas exploration companies, OMCs, power generation and commercial banks. Index-heavy stocks, including OGDC, PPL, POL, HUBCO, and PSO, traded in the red.
During the previous week, the PSX endured turbulence as a combination of rising geopolitical tensions in the Middle East, volatile international commodity prices, and mixed domestic economic indicators rattled investor sentiment.
The benchmark KSE-100 Index remained in sharp retreat from its recent highs. On a week-on-week basis, the benchmark settled at 120,023.23 points, reflecting a 1.7% decline compared to the previous week’s close at 122,143.57 points.
Internationally, shares slipped in Asia on Monday and oil prices briefly hit five-month highs as investors anxiously waited to see if Iran would retaliate against US attacks on its nuclear sites, with resulting risks to global activity and inflation.
Early moves were contained, with the dollar getting only a minor safe-haven bid and no sign of panic selling across markets.
Oil prices were up around 2.8%, but off their initial peaks.
Optimists were hoping Iran might back down now its nuclear ambitions had been curtailed, or even that regime change might bring a less hostile government to power there.
Stocks slide, oil and gold jump after Israel strikes Iran
Key will be access through the Strait of Hormuz, which is only about 33 km (21 miles) wide at its narrowest point and sees around a quarter of global oil trade and 20% of liquefied natural gas supplies.
For now, Brent was up a relatively restrained 2.7% at $79.12 a barrel, while U.S. crude rose 2.8% to $75.98.
Elsewhere in commodity markets, gold edged down 0.1% to $3,363 an ounce.
Share markets were proving resilient so far, with S&P 500 futures off a moderate 0.5% and Nasdaq futures down 0.6%.
MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.5, and Japan’s Nikkei eased 0.9%.
Europe and Japan are heavily reliant on imported oil and LNG, whereas the United States is a net exporter.
This is an intra-day update
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