PSX crashes as KSE-100 loses 11,000 points amid Middle East crisis

KARACHI: The Pakistan Stock Exchange (PSX) plunged on Monday as the KSE-100 Index lost more than 11,000 points (7.06%), amid turmoil in global markets triggered by the United States and Israel attack on Iran, while oil prices surged past $100 per barrel.

Stocks tumbled shortly after the market opened, leading to a temporary suspension of trading.

According to a notice issued by the Pakistan Stock Exchange, a market halt was triggered after the KSE-30 Index fell 5% from its previous trading day’s close. In line with PSX regulations, all equity-based markets were subsequently suspended.

The KSE-100 Index plunged to 146,383.61 at 1:08pm, down sharply from the previous close of 157,496.10.

Analysts said investors rushed to sell positions amid growing risks to global energy supplies and key trade routes.

According to Agence France-Presse (AFP), global Stock markets plunged Monday as oil and gas prices soared on fears about supplies from the Middle East with the US-Israeli war against Iran continuing into a second week with no sign of letting up.

Investors, already spooked by concerns over extended tech valuations and the huge spending on AI, ran for the hills as crude rocketed to its highest level since the Russian invasion of Ukraine in 2022.

Fears grew that the Middle East conflict could last for some time after US President Donald Trump said only the “unconditional surrender” of Iran would end the war.

He added at the weekend that the spike in prices was a “small price to pay” to eliminate Iran’s nuclear threat, reiterating the White House’s insistence that the rise is temporary.

Both main contracts, which had surged more than a quarter last week, spiked as Iran carried out retaliatory strikes against crude-producing Gulf nations.

West Texas Intermediate and Brent both jumped around 30 percent to hit peaks just short of $120 a barrel. European gas prices also soared 30 percent on Monday.