Karachi, June 23, 2025 – The Pakistan Stock Exchange (PSX) endured a severe blow on Monday, plummeting by 3,856 points as rising geopolitical tensions from the escalating conflict between Iran and Israel sent shockwaves across global financial markets.
The benchmark KSE-100 index of the PSX opened on a weak note and continued to decline throughout the session, closing at 116,167 points compared to Friday’s close of 120,023. The market witnessed an intraday drop of as much as 4,135 points before marginal recovery trimmed some of the losses.
Analysts at Topline Securities attributed the downturn to the rapidly intensifying Iran-Israel conflict, which has injected deep uncertainty into regional markets and triggered a wave of risk-off sentiment. Investors, alarmed by the potential economic fallout of a prolonged conflict, rushed to offload positions in key sectors, leading to broad-based panic selling at the PSX.
Prominent index-heavy stocks, including Engro Corporation (ENGROH), Pakistan Petroleum Limited (PPL), Lucky Cement (LUCK), Oil & Gas Development Company (OGDC), and Mari Petroleum (MARI), faced heavy selling pressure. These five counters alone contributed a combined 1,054-point drag on the index, reflecting the depth of the market’s anxiety.
“The mood at the PSX mirrored global market jitters, as investors reacted to the heightened volatility stemming from geopolitical instability. The Iran-Israel conflict has raised serious concerns about energy supply chains, inflationary pressures, and the possibility of wider regional involvement,” said an analyst at a Karachi-based brokerage house.
Trading volumes remained robust despite the bearish trend, with total share turnover reaching 592 million shares and overall market value standing at PKR 23 billion. WorldCall Telecom Limited (WTL) led the volume chart with 53 million shares traded, indicating that retail activity remained active despite market headwinds.
Market participants noted that further escalation in the conflict could deepen investor pessimism and add to existing economic challenges facing Pakistan. The situation remains highly fluid, and the outlook for the PSX in the coming days will largely depend on how the conflict unfolds and its impact on global oil markets, foreign capital flows, and regional stability.