KSE-100 drops 3.3% in early trading as oil prices jump 8%, while global equities and futures also move lower
Pakistan’s stock market faced intense selling pressure on Monday, as the benchmark KSE-100 Index fell by more than 5,500 points at the opening bell following the breakdown of US–Iran talks without any agreement. Sentiment was further weakened by reports of a US naval blockade targeting Iranian ports, including the Strait of Hormuz, which drove global oil prices up by around 8%.
According to the Pakistan Stock Exchange (PSX) website, the market opened sharply bearish, with the KSE-100 sliding to an intraday low of 161,638.07 within minutes of trading. This reflected a drop of 5,553.3 points, or 3.3%.
Heavy losses were seen across major sectors, including automobiles, cement, commercial banks, oil and gas exploration, oil marketing companies, power generation, and refineries. Key index-heavy stocks such as ARL, HUBCO, MARI, OGDC, POL, PPL, PSO, SSGC, SNGPL, and WAFI also traded in the red.
By 1:40 pm, the index had recovered slightly but remained under pressure at 161,867.51, down 5,323.86 points or 3.18% from the previous close.
In contrast, the previous week had ended on a positive note, with the PSX gaining 1,673.87 points (1.01%) to close at 167,191.38, supported by optimism surrounding the Islamabad talks.
US President Donald Trump stated on Sunday that American forces would intercept any vessel in international waters that had paid a toll to Iran. Meanwhile, the US Central Command announced that a naval blockade, set to begin at 10 a.m. ET on Monday (1400 GMT), would be enforced without bias against ships of all nationalities entering or leaving Iranian ports and coastal waters, including those in the Arabian Gulf and the Gulf of Oman.
Global financial markets responded sharply to the developments following the stalled talks. Oil prices surged, with Brent crude rising by 8% to $103 per barrel. The US dollar strengthened, while the euro slipped by about 0.5% to $1.1672. S&P 500 futures also fell 1% in early trading.
Asian stock markets likewise moved lower as investors turned cautious amid rising geopolitical tensions. Japan’s Nikkei declined 0.4%, South Korea’s KOSPI dropped 1.4%, and Australia’s S&P/ASX 200 fell 0.6%.
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