‘Panic selling’: PSX plunges over 15,000 points amid geopolitical tensions
The Pakistan Stock Exchange (PSX) opened the week in the red, plunging more than 15,000 points amid heightened geopolitical tensions following the US-Iran conflict, which has also roiled global equity markets.
PSX’s benchmark KSE-100 index touched an intraday high of 155,913.35 (down 12,148.81 points, or 7.23%) and a low of 152,717.46 (down 15,344.70 points, or 9.13%), compared with the previous close of 168,062.16.
“Due to panic selling, PSX fell 9%. Leveraged position coupled with Iran and Afghanistan positions added fuel to the fire,” Topline Securities CEO Mohammed Sohail told Geo.tv.
AAH Soomro, an independent investment and economic analyst, said: “This is panic mode. May last a few days. Keep an eye on Oil. Below 80 should settle the market by Friday.”
Following the bloodbath at the stock market, trading was halted for 45 minutes till 10:27am before resuming.
Trading was halted for 45 minutes during the sell-off before resuming, as risk-off sentiment spread across global markets.
Military strikes by the United States and Israel on Iran showed no sign of lessening, while Iran responded with missile barrages across the region.
In the Mid East, the UAE and Kuwait temporarily closed their stock markets citing “exceptional circumstances”.
For Europe, EUROSTOXX 50 futures shed 1.4% and DAX futures slid 1.3%. On Wall Street, S&P 500 futures and Nasdaq futures both lost 0.6%.
Meanwhile, oil prices soared as Brent briefly spiked almost 14% and West Texas Intermediate nearly 12% at the start of business after the attack on Iran, which martyred Supreme Leader Ayatollah Ali Khamenei and other senior officials.
The bombings have also seen the vital Strait of Hormuz — through which around 20% of global seaborne oil passes — effectively shut and several ships attacked, fanning supply fears.
On Friday, KSE-100 fell by 830.92 points or 0.49% to 168,062.17 points from 168,893.09 points. The highest index of the day was recorded at 169,379.97 points, while the lowest was 165,811.88 points.
