PSX KSE-100 plunges on Middle East tensions as panic selling hits the Pakistan Stock Exchange on Monday, sending the benchmark index down more than 9,000 points in early trading. Following the sharp decline, trading was halted for 45 minutes.
The KSE-100 dropped 9,453.22 points (6%) to 148,042.88, compared with the previous close of 157,496.10. The report noted the index had already fallen 10,566 points (6.3%) last week as the US-Israel vs Iran war intensified.
Analysts expect cautious trading for the rest of the week as investors track geopolitical developments, inflation trends, and the direction of interest rates.
Read: Oil Prices Surge to $110 on Iran War as Hormuz Risks Spike
The report said the KSE-100 is trading at a price-to-earnings ratio of about 8.1 and offers a dividend yield of around 6.3%, which some analysts view as attractive at current levels despite the volatility.
Market direction this week may depend heavily on the outcome of the Monetary Policy Committee (MPC) meeting scheduled for Monday, as well as any further escalation in the region.
The sell-off was not limited to Pakistan. Other Asian markets also plunged as oil prices surged amid fears of Middle East supply disruptions, the report said.
West Texas Intermediate jumped as much as 30% to hit $118.88 per barrel, while Brent spiked 28% to $118.73. The report added that the rally has been driven by concerns that the conflict could drag on, with investors reacting to retaliatory strikes and the risk of supply shocks.
