The Pakistan Stock Exchange witnessed a sharp decline on Monday, as heavy selling pressure rattled investor confidence in early trading.
Pakistan Brokers US-Iran Ceasefire, Revives Legacy as Quiet Diplomatic Power
The benchmark KSE-100 Index plunged by 5,353.67 points at the opening bell, reflecting a steep drop in market sentiment. Continued volatility was observed, with the index falling 4,567.31 points, or 2.73%, to 162,624.06 by 10:29am.
However, the market showed slight signs of recovery later in the session. By 12:49pm, losses had narrowed to 4,450.97 points (-2.66%), with the index improving to 162,740.40, indicating a modest rebound.
Analysts attributed the sharp downturn to heightened geopolitical tensions following failed negotiations between the United States and Iran in Islamabad. The lack of a breakthrough in talks dampened investor sentiment and increased uncertainty in global markets.
Adding to the pressure, global oil prices surged sharply after US President Donald Trump announced a blockade on maritime traffic linked to Iranian ports via the Strait of Hormuz — a critical energy corridor. Crude oil benchmarks jumped more than 7%, crossing the $100 per barrel mark, raising concerns about inflation and economic stability.
KTrade Securities Equity Trader Ahmed Sheraz noted that the market opened sharply lower as investors reacted cautiously to the absence of a deal and the continuation of geopolitical tensions. He added that rising oil prices, touching around $104 per barrel, further weighed on equities.
Market experts expect continued volatility in the near term, driven by evolving geopolitical developments and fluctuations in energy prices. However, some analysts maintain a cautiously optimistic outlook, citing indications from both Washington and Tehran that they intend to uphold the current ceasefire.
Attention is now shifting to the next round of negotiations, with reports suggesting that Qatar and Switzerland have expressed willingness to host future talks.
