Escalating Middle East conflict sparks broad-based selling at the Pakistan Stock Exchange
KARACHI: Pakistan’s KSE-100 Index plunged by more than 1,900 points at the opening of trading on Monday, July 13, as escalating tensions in the Middle East triggered broad-based selling and weakened investor confidence at the Pakistan Stock Exchange (PSX).
As of 11:00 a.m., the KSE-100 Index was trading at 180,510.04 points, extending losses after reports of renewed U.S. strikes on Iran and the collapse of efforts to maintain a ceasefire fuelled fears of a broader regional conflict.
The sharp decline reflected investor concerns that worsening geopolitical tensions could drive international oil prices higher, increasing pressure on Pakistan’s import bill, inflation and external account.
Middle East Tensions Weigh on Market
Market participants said risk aversion dominated early trading as investors reduced exposure to equities amid heightened uncertainty over developments in the Middle East.
Selling pressure was visible across most major sectors, while overall investor confidence remained subdued as traders assessed the potential economic impact of rising geopolitical risks.
Mixed Performance Among Active Stocks
Among actively traded stocks in early dealings, CNERGY gained Rs0.45 to Rs10.14, while Pakistan Refinery Limited (PRL) rose Rs1.36 to Rs43.43. LOTCHEM and BlueEx also traded in positive territory during the opening session.
On the downside, K-Electric (KEL) declined Rs0.13 to Rs7.97, while WorldCall Telecom (WTL) and First National Equities Limited (FNEL) also recorded losses.
Outlook
Analysts said the near-term direction of the KSE-100 Index will remain closely linked to geopolitical developments in the Middle East. Any further escalation in the conflict or renewed diplomatic efforts between the parties involved is expected to play a key role in shaping investor sentiment and market performance in the coming sessions.
They added that investors will also monitor movements in international crude oil prices, which remain a critical factor for Pakistan’s economy and the domestic equity market.