The Pakistan Stock Exchange (PSX) started the trading week on a negative note, with the benchmark KSE-100 index shedding over 2,000 points during intraday trade on Monday.
By 10:19 a.m., the index had fallen 2,215.27 points to 180,026.5, down from the previous close of 182,241.77.
Market sentiment came under pressure after the United States and Iran exchanged fresh strikes amid an escalating confrontation over control of the Strait of Hormuz, according to Mettis Global, a financial data portal. The flare-up sent oil prices surging more than 4 percent on Monday.
Awais Ashraf, director of research at AKD Securities, told Dawn that investor confidence had weakened significantly due to the escalating hostilities. He noted that shipping traffic through the Strait of Hormuz had dropped to a five-week low, raising doubts about the durability of the interim peace agreement signed last month.
Heavyweight stocks led the early decline, although their individual losses were relatively modest, ranging between 1 and 1.7 percent. Conversely, the refinery sector traded in positive territory on optimism surrounding the anticipated refinery policy, which is expected to facilitate much-needed upgrades and capacity expansions.
The downturn reverses Friday’s recovery, when value-hunting helped the market snap a three-session losing streak. That brief respite came amid mounting geopolitical concerns in the Middle East and fears that oil supply disruptions from the Strait of Hormuz could fuel inflation in import-dependent economies.
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