The Pakistan Stock Exchange (PSX) opened the week with intense volatility as the KSE-100 index tumbled by over 2,000 points in the early minutes of trading on Monday, driven by fears stemming from a major geopolitical escalation in the Middle East. The decline followed reports of a US military strike targeting Iran’s nuclear infrastructure, sending shockwaves across regional markets and rattling investor confidence in Pakistan’s financial landscape.
At the opening bell, the benchmark index immediately dropped to 117,977 points, reflecting a sharp decline of 2,046 points or 1.71 percent. This sudden drop captured the reaction of a market already on edge, with investors responding to deepening tensions between the United States and Iran. By 9:55 AM, a slight recovery was observed as the index stood at 118,778, showing a loss of 1,244 points or 1.04 percent. However, the overall mood remained firmly negative.
Within the first 20 minutes of trading, the market recorded a volume of 68,995,891 shares, with a total share value of Rs. 2.61 billion. The early activity reflected broad-based uncertainty, as traders moved quickly to reassess their positions amid fears of further instability and regional fallout.
Out of the 369 companies that actively traded during this initial window, 77 recorded gains while 280 suffered losses. The prices of 12 companies remained unchanged. The imbalance underscored the impact of global headlines on investor sentiment, where caution and risk aversion took precedence over earnings or technical indicators.
Among the most actively traded stocks in early session hours were WorldCall Telecom (WTL), Sui Southern Gas Company (SSGC), Pakistan Aluminium Beverage Cans (PASL), Pakistan International Airlines Holding Company (PIAHCLA), and K-Electric (KEL). WTL declined slightly to Rs. 1.41 after shedding Rs. 0.04 with over 10 million shares traded. SSGC defied the market trend and rose by Rs. 0.70 to reach Rs. 43.7 with 4.1 million shares exchanged. PASL lost Rs. 0.23 and settled at Rs. 2.61, while PIAHCLA dropped by Rs. 0.94 to Rs. 21.12. KEL slipped by Rs. 0.09 to close at Rs. 5.04, with moderate volumes.
Cnergyico (CNERGY) and Kohinoor Spinning Mills (KOSM) also experienced declines early in the session, with CNERGY falling to Rs. 6.97 and KOSM closing at Rs. 5.36, each reflecting investor wariness amid regional instability.
Analysts noted that Monday’s market behavior was not driven by any domestic economic development or earnings reports, but rather by global anxiety tied to the repercussions of escalating US-Iran hostilities. The potential closure of the Strait of Hormuz and increased military risk in the Red Sea region have only intensified fears of supply chain disruptions, rising energy costs, and a broader financial market downturn.
As geopolitical uncertainty continues to cast a shadow on financial markets, the Pakistan Stock Exchange is expected to remain volatile in the coming days. Market participants will closely watch for developments in the Middle East, with any further escalation likely to impact trading dynamics, investor outlook, and foreign participation.