KSE-100 Index plunges by over 3pc amid US attack on Iran

KARACHI: Despite positive developments on the circular debt front, the Pakistan Stock Exchange (PSX) plunged by 3.21 per cent on Monday amid the latest escalation in the Middle East conflict after US strikes at Iran’s three nuclear sites. 

The market experienced a subdued trading session, in line with the cautious mood seen across global markets. T

In this scenario, the benchmark KSE-100 Index dropped sharply, falling as much as 4,135 points during intraday trading, before trimming some of the losses to settle at 116,167 — a decline of 3,855 points or 3.21 per cent.

“Investor sentiment was dampened by rising geopolitical tensions, especially the intensifying conflict between Iran and Israel, which led to heightened uncertainty and widespread risk aversion. This nervousness triggered broad-based panic selling,” Topline Securities said. 

Read more: NSC says reckless acts can lead to a wider conflict amid Iran war

That is why the market opened with negative sentiments, as the KSE-100 Index plunged to an intraday low of 115,887.48, down by 4,135.76 points.

NO RESPONSE TO CIRCULAR DEBT NEWS 

Amid geopolitical tensions (between Iran, the US, and Israel), the market remained under pressure despite positive developments on the circular debt front, where the government secured Rs1.275 trillion at KIBOR minus 0.9 per cent, Al Habib Capital stated.

Read more: It is all about Balkanization of Iran, not Iranian nuclear programme

“The ongoing geopolitical tensions and continued volatility in international oil prices dampened investor confidence, prompting risk-off sentiment across the board,” according to Ismail Iqbal Securities.

A sector-wise look shows that the cement, oil and gas exploration companies, and commercial banks were the major laggards during Monday’s session.

Hence, major index-heavy stocks — including ENGROH, PPL, LUCK, OGDC, and MARI — were among the top losers, together dragging the index down by 1,054 points.

Read more: Iran inches closer to closing Strait of Hormuz, US wants China to stop it

Meanwhile, the session an overall trading volume of 592 million shares and a total turnover of Rs23 billion. WTL topped the volume charts with an impressive 53 million shares changing hands.