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Summary Pakistan’s stock market suffered a sharp decline due to Middle East uncertainty
KARACHI (Dunya News) – Ongoing uncertainty in the Middle East continued to weigh heavily on financial markets, with the Pakistan Stock Exchange (PSX) witnessing another day of significant losses at the start of the business week.
During intraday trading, the benchmark KSE-100 index plunged by more than 7,000 points, reflecting heightened investor concerns and widespread selling pressure. The index dropped to a low of 144,656 points amid volatile market conditions.
However, some recovery was seen later in the session, as the market regained part of its losses before closing. By the end of the trading day, the KSE-100 index settled at 146,842 points, marking a decline of 4,864 points compared to the previous close.
It is worth noting that the market had ended last week on a relatively stronger footing, with the index closing at 151,707 points, indicating a sharp week-on-week deterioration in investor sentiment.
Analysts attribute the downturn primarily to geopolitical tensions in the Middle East, which have triggered uncertainty across global markets. Investors are increasingly adopting a cautious approach, leading to reduced risk appetite and increased volatility.
The negative trend was not limited to Pakistan, as major Asian markets also recorded steep declines. Japan’s Nikkei index fell by over 5.5 per cent, while South Korea’s KOSPI dropped nearly 5 per cent. Malaysia’s FTSE Bursa index declined by around 1.5 per cent.
Similarly, China’s Shanghai Composite index and Hong Kong’s Hang Seng index both recorded losses of approximately 1 per cent, reflecting a broader regional impact of the geopolitical situation.
Market experts warn that unless there is clarity and stability in the Middle East, equity markets may continue to face pressure in the near term.
