Pakistan’s stock market suffered a heavy blow on Monday, as rising global tensions sparked panic selling across the trading floor.
The benchmark KSE-100 Index at the Pakistan Stock Exchange closed at 167,691.08, down 5,478.63 points or 3.16 percent. It was one of the sharpest single-day falls in recent weeks.
The session was marked by sharp swings. The index climbed to an intraday high of 174,336.85 in early trade, gaining more than 1,100 points. However, the mood soon changed and heavy selling dragged it down to a low of 166,886.63. The market moved within a wide range of over 7,400 points during the day.
Tensions rattle investors
Dealers said investor confidence was shaken by growing tensions between the US and Iran. Fears of a possible conflict unsettled global financial markets and prompted many investors to reduce risk.
At the local level, rising border tensions between Pakistan and Afghanistan also weighed on sentiment. Many investors chose to stay on the sidelines or cut their positions.
Out of 100 companies in the index, only two managed to close higher, while 98 ended in the red. Major sectors including commercial banks, cement, oil and gas exploration, and fertiliser dragged the index lower.
Trading activity also slowed. Total market volume fell to 461.26 million shares from 542.98 million in the previous session. Traded value declined to Rs24.94 billion. In all, 479 companies were traded, with the vast majority posting losses.
Despite the sharp fall, the KSE-100 remains up 33.48 percent during the current fiscal year. However, it has declined 3.66 percent so far this calendar year.
Investors are now looking ahead to the arrival of an International Monetary Fund delegation on February 25. Market participants expect that signals emerging from the talks could shape the direction of the market in the coming days.
