Pakistan’s benchmark KSE-100 Index came under pressure as geopolitical tensions and rising oil prices weighed on investor sentiment.
KARACHI: The Pakistan Stock Exchange came under heavy selling pressure Monday, with the benchmark KSE-100 Index losing 772.50 points, or 0.44%, in early trading.
At around 10:15 a.m., the KSE-100 Index stood at 174,556.32 points, reflecting broad-based weakness across several major sectors.
Automobile assemblers, cement companies, commercial banks, oil marketing companies and refineries remained under pressure during the opening phase of trading.
Several index-heavy stocks also traded in negative territory, including Attock Refinery Limited (ARL), Hub Power Company (HUBCO), Pakistan State Oil (PSO), Fauji Fertilizer Company (FFC), Meezan Bank Limited (MEBL), National Bank of Pakistan (NBP) and United Bank Limited (UBL).
The decline came after a difficult week for the local equity market. The KSE-100 had fallen 1.3% during the previous week, closing at 175,328.81 points.
Investor sentiment has remained cautious amid heightened geopolitical tensions, particularly renewed military confrontations involving the United States and Iran.
Higher international oil prices have added to market concerns, with rising energy costs potentially increasing inflationary pressure and putting further strain on Pakistan’s external account.
Global markets were also closely monitoring developments in the Gulf region. Brent crude rose 0.2% to around $96.45 a barrel Monday after gaining almost 10% during the previous week. US West Texas Intermediate crude advanced 0.4% to approximately $91.85 a barrel.
Iran has announced plans to establish a restricted maritime zone near the Strait of Hormuz. The development followed reports of US strikes on Iranian tankers and the Islamic Revolutionary Guard Corps launching ballistic missiles toward US Navy vessels.
The Strait of Hormuz is a major route for global energy supplies. Any prolonged disruption could push oil prices higher and increase inflation risks in major economies.
Investors are also awaiting US inflation data for clues about the impact of higher energy costs on consumer prices and the future direction of monetary policy.
European markets remained cautious ahead of a key European Central Bank interest-rate decision. EUROSTOXX 50 and DAX futures slipped around 0.1%, while FTSE futures were broadly flat.
US trading was expected to remain subdued because of a public holiday, with S&P 500 and Nasdaq futures marginally lower.
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