KSE-100 plunges more than 4,300 points as market volatility mounts

WEB DESK: Pakistan’s equity market suffered a bruising start to the week as the benchmark KSE-100 index plummeted by more than 4,300 points on Monday. By early afternoon, the index had shed roughly 2.8pc of its value, sliding to an intraday low of 149,385.39 points.

This sharp contraction follows a dismal period for the bourse, which has now recorded seven consecutive weeks of losses. The pervasive selling pressure reflects a deepening sense of unease amongst investors, who remain spooked by a lack of positive economic catalysts and the persistent absence of a Staff-Level Agreement with the International Monetary Fund (IMF) regarding the third review of the country’s $7b Extended Fund Facility.

Geopolitical tensions and global oil surge

The rout has been further exacerbated by a volatile international landscape, most notably the recent spike in global oil prices. Tensions in the Middle East, specifically involving US-Israeli actions against Iran, have led to the closure of the Strait of Hormuz a vital artery for global energy supplies.

For an oil-importing nation like Pakistan, the prospect of prolonged disruptions translates into heightened inflationary fears and increased pressure on the current account.

As the trading session continues, market participants remain on edge, closely monitoring both regional geopolitical developments and any potential signals from the IMF that might stem the current tide of fiscal uncertainty.