Summary PSX dropped 5,000 points to 146,684 as Middle East tensions hit markets; global trading faces risk aversion, while Brent oil jumps 59% amid Iran conflict and Houthi attacks.
KARACHI (Dunya News) – The Pakistan Stock Exchange (PSX) fell into the negative zone on Monday as geopolitical tensions in the Middle East weighed on investor sentiment.
On the first day of the trading week, the KSE-100 Index dropped over 5,022.90 points to reach 146.684.61 points.
In previous session, the stock market had closed at 151,707 points at the end of last week, reflecting a notable drop in early trading this week.
The war in Iran has sparked chaos across financial markets, leaving some investors and market makers reluctant to take on risk, making trading harder and costlier - a scenario regulators watch closely.
None of the world's biggest markets, from U.S. Treasuries, to gold, to currencies have been spared, investors and traders said. In Europe, hedge funds, which now dominate bond trading, added to those dynamics as they rapidly unwound a number of bets this month.
Meanwhile, oil prices extended gains on Monday, with Brent headed for a record monthly rise, after Yemeni Houthis launched their first attacks on Israel over the weekend, widening the U.S.-Israel war with Iran in the Middle East.
Brent crude futures jumped $3.09, or 2.74%, to $115.66 a barrel by 2353 GMT after settling 4.2% higher on Friday.
US West Texas Intermediate was at $102.56 a barrel, up $2.92, or 2.93%, following a 5.5% gain in the previous session.
Brent has soared 59% this month, the steepest monthly jump, exceeding gains seen during the 1990 Gulf War, after the Iran conflict effectively closed the Strait of Hormuz, a conduit for a fifth of the world's oil and gas supplies.
