KARACHI (Kashmir English): The Pakistan Stock Exchange (PSX) witnessed a sharp decline on Monday as investors reacted to growing regional tensions following U.S. airstrikes on Iran’s nuclear sites. The benchmark KSE-100 index fell significantly in early trading hours, reflecting a risk-averse market sentiment.
The benchmark KSE-100 Index of PSX declined by 1639.27 points, a drop of 1.37 percent, at 11:44 am during the intra-day trading.
The KSE-100 Index plunged to 118,383.96 points, down from 120,023.23 points recorded in the previous trading session.
Meanwhile, in international market, the price of Brent crude oil rose around 1.53% to $78.19 a barrel as of around 7.15 CEST, while WTI rose 1.48% to $74.93 a barrel.
It is worth mentioning here that President Donald Trump said the US military has carried out an attack on three Iranian nuclear sites, including the underground uranium enrichment facility at Fordo.
Pakistan strongly condemned the US attacks on Iranian nuclear facilities.
The U.S. airstrikes on key Iranian nuclear facilities over the weekend have shaken global markets, especially in oil-dependent economies. Pakistan, being heavily reliant on oil imports, is particularly vulnerable to any price hikes. Crude oil prices surged to their highest level in five months, raising fears of inflation and increased trade deficits.
Iran retaliated by closing down the Strait of Hormuz, a vital oil supply route, leading to even more economic disruption globally and domestically. Such fears were clearly reflected in today’s PSX activity.
In addition to local investors, foreign institutional participation at the PSX also remained low amid the geopolitical developments. Investors are expected to stay cautious in the coming days, especially if further conflict unfolds in the Middle East.
