Pakistan’s stock market came under pressure on Monday, with shares falling sharply in early trade as rising tensions in the Middle East unsettled investors.
The benchmark KSE-100 Index dropped nearly 1,600 points within the first few hours of trading. By 11:44am, it was recorded at 164,025, showing a decline of around 0.95 percent. The selling trend continued, and by 12:34pm the index had fallen further to 163,499, down 2,096 points or 1.27 percent for the day.
The market moved within a range of 163,235 to 164,939 points during the session, compared to the previous close of 165,596. Trading activity remained active, with over 87 million shares changing hands. Despite the day’s losses, the index is still up over 36 percent over the past year, though it has declined more than 6 percent since the start of 2026.
Broad-based selling across sectors
Losses were seen across most major sectors. Automobile assemblers, cement, commercial banks, fertiliser, oil and gas exploration, oil marketing companies, power generation and refineries all traded lower.
Heavyweight stocks such as Attock Refinery, Hub Power, Mari Energies, OGDC, Pakistan Petroleum, Pakistan Oilfields, HBL, MCB Bank and UBL remained under pressure and pulled the index down.
Among actively traded stocks, several companies including Dewan Salman, Cnergyico and Bank of Punjab posted losses. However, some shares managed to gain ground, with YouWealth and Pakistan International Airlines Holding Company showing positive movement during the session.
On the broader market, a number of smaller companies recorded sharp gains of up to 10 percent, while several others faced steep declines nearing similar levels, reflecting heightened volatility.
Oil surge adds to pressure
Investor sentiment weakened further after global oil prices surged above $110 per barrel following a reported drone strike targeting a nuclear site in the United Arab Emirates.
Market analysts said the rise in oil prices has revived concerns for energy-importing countries like Pakistan, where higher fuel costs can widen external imbalances and increase inflationary pressure.
Global markets also under strain
The cautious mood was not limited to Pakistan. Asian markets also declined on Monday as geopolitical risks pushed oil prices and bond yields higher.
Japan’s Nikkei index slipped 1.1 percent, extending last week’s losses, while stocks in South Korea edged lower. A broader index tracking Asia-Pacific shares outside Japan dropped 0.9 percent.
Tensions in the Gulf region have escalated after reports of drone activity and disruptions near key oil shipping routes. The Strait of Hormuz, a critical passage for global oil supply, is operating at limited capacity, adding to market concerns.
Previous week sets weak tone
The latest decline follows a difficult previous week for the PSX, where the KSE-100 Index fell 3.2 percent, losing over 5,500 points. Analysts linked the earlier losses to ongoing geopolitical uncertainty, which has continued to weigh on investor confidence despite some improvement in Pakistan’s economic indicators.
With global risks still in focus, market participants are expected to remain cautious in the coming sessions.
