The Pakistan Stock Exchange tumbled 721 points on Monday as escalating tensions between the United States and Iran rattled investors, pushing the KSE-100 index down to 176,975.68 amid a selloff across major sectors.
Oil Prices Spike on Hormuz Escalation
The selloff was triggered by a sharp escalation in the six-month-old conflict between Washington and Tehran, after the United States struck an Iranian island in the Strait of Hormuz, prompting Iranian retaliation. The news sent international oil prices up nearly 3 percent, with Brent crude climbing to around $91 per barrel, raising fresh concerns about Pakistan’s import bill and inflation outlook.
Banks, Cement and Autos Lead the Decline
Heavy selling was recorded across automobile assemblers, cement, commercial banks, oil marketing companies, exploration firms and power generation stocks. United Bank, Systems Limited, Habib Bank and Lucky Cement were named as the biggest negative contributors to the index. KTrade Securities analyst Ahmed Sheraz said the market stayed under pressure as selling in banks, cement and technology stocks weighed on the index, adding that renewed geopolitical escalation and rising crude prices would keep investors cautious in the near term.
Refinery Stocks Buck the Trend
Not every sector moved lower. Arif Habib Limited analyst Ali Najib noted that the market witnessed further consolidation even as the refinery sector attracted strong buying interest ahead of anticipated plant upgrade agreements. Pakistan Refinery, National Refinery and Attock Refinery all posted notable gains, offering a bright spot in an otherwise weak session.
What It Means for Investors
Monday’s decline adds to a volatile stretch for Pakistani equities, which have swung sharply in recent weeks on a mix of domestic economic data and external shocks. With inflation already climbing and the security situation in Balochistan under fresh scrutiny, analysts say the market’s near-term direction will largely hinge on how the Middle East conflict evolves and whether oil prices stabilize in the coming days.
Brokerages are advising a cautious, sector-selective approach until clarity emerges on both the geopolitical front and Pakistan’s own inflation trajectory.
