PSX Tumbles as Rising US-Iran Tensions Trigger Investor Concerns

The Pakistan Stock Exchange witnessed a steep downturn on Monday as investor confidence weakened sharply amid intensifying geopolitical friction between the United States and Iran, leading to widespread selling pressure across the market. The KSE-100 Index recorded a heavy intraday fall of over 2,000 points, reflecting panic-driven activity as traders reacted to rising uncertainty in global politics and energy markets. At one stage, the benchmark plunged by 2,046 points to 168,432.45 shortly after trading began, before continuing to hover in negative territory throughout the session. By mid-afternoon, the index stood at 168,706.98, marking a loss of 1,771.96 points or 1.04 percent compared to the previous close. Selling was observed across multiple sectors including banking, cement, automobiles, oil and gas exploration, oil marketing companies, pharmaceuticals, power generation, and refining, indicating a broad-based erosion in market sentiment. The decline extended a losing streak from the previous week, when the index had already shed more than 3,400 points amid global uncertainty. Analysts linked the persistent downturn to heightened geopolitical risks, rising crude oil prices, and shifting expectations around U.S. monetary policy following strong labor market data. Global markets also mirrored the pressure, with Asian and European equities sliding as investors sought safer assets.