The Pakistan Stock Exchange (PSX) witnessed a massive 1,600-point slide on Monday, a day after the US launched strikes on Iran’s nuclear sites. The benchmark KSE-100 index fell below the 119,000-point support level.

 

As per the details, the decline in the KSE-100 index has been exacerbated by the US’ involvement after already being locked in a freefall last week because of escalating tensions between Iran and Israel.

 

It merits mention that the PSX's losing streak comes two weeks after the release of the latest federal budget that caused the index to reach an all-time high. However, the budget-related spike in the exchange was short-lived as reports indicate that Iran-Israel tensions have resulted in oil prices climbing to a five-month high. The hike in global oil prices has caused capital markets across the region to take a hit, including the PSX.

 

These developments caused the KSE-100 index to open in the red in the early hours of the day. As of 12 PM, the KSE-100 index has shed 1,656.07 points because of a rise in market-wide selling pressure. According to reports, companies in key sectors such as commercial banking, automobile assembling and oil and gas exploration witnessed larger sell-offs.

 

Data from the PSX reveals that the KSE-100 index reached an intraday low of 117,977.81 points at 9:37 AM. A minor recovery was recorded after the index hit its intraday low, allowing the index to reach an intraday high of 118,798.51 points at approximately 9:58 AM.

 

However, the rally was short-lived, and the index witnessed a decline again, with 118,000 points resulting as a key support level. For reference, the KSE-100 closed at 120,023.23 points on Friday, after which the index shrank by 1.38 percent during trading hours on Monday, leading to a 1,656.07 point drop.

 

Of the 17 indexes listed on the exchange, 16 remained in the red with the All-Share Index (ALLSHR) shrinking by 1.40 percent, which translates into a 1,047.13 point drop in the index. Unlike the KSE-100, which tracks the performance of the 100 largest and most liquid companies, the ALLSHR index records the performance of all publicly listed companies on the PSX.

 

The aforementioned figures are not final and are likely to fluctuate as stocks continue to be traded on the floor of the PSX.