The Pakistan Stock Exchange (PSX) experienced a dramatic drop on Monday, driven by investor anxiety over intensifying hostilities in the Middle East involving Iran, the United States, and Israel. The day ended with substantial losses as the market dipped 3.21 percent.
Throughout the trading session, the benchmark KSE-100 Index nosedived by more than 4,000 points at one stage, prompting widespread concern and triggering sell-offs across key sectors.
In a matter of hours, the PSX index breached and fell below four critical thresholds — 120,000, 119,000, 118,000, and 117,000 points — reflecting the depth of investor panic.
By market close, the index had settled at 116,167 points, down 3,855 points from the previous day’s close.
The plunge came amid global jitters over recent military developments, including a reported U.S. strike on Iranian nuclear infrastructure, which has heightened fears of broader regional conflict.
Investors are particularly alarmed by the potential disruption of oil supplies through the Strait of Hormuz, a vital energy corridor. A spike in oil prices could place immense pressure on Pakistan’s already fragile economy.
Market watchers say uncertainty is likely to linger, with risk-averse behavior dominating the trading floor as geopolitical tensions show no signs of easing.
