Trading stops after 10000 point crash at Pakistan Stock Exchange

Pakistan Stock Exchange – (Web Desk) – The week started on a difficult note at the Pakistan Stock Exchange on Monday. Rising tensions in the Middle East caused heavy selling in the market. Because of this pressure, the benchmark KSE 100 index fell sharply by more than 9,000 points during early trading.

The index dropped by 9,453 points, or about 6 percent, reaching 148,042 points. In the previous session, it had closed at 157,496 points. The market had already been under pressure last week. During that period, the index lost more than 10,500 points, or 6.3 percent, mainly due to the conflict involving the United States, Israel, and Iran.

After the sharp fall on Monday morning, trading at the exchange was stopped for 45 minutes to control panic selling.

Market experts say investors may remain careful this week. They are closely watching regional tensions, inflation trends, and the future direction of interest rates. At present, the market is trading at a price to earnings ratio of around 8.1 times and offers a dividend yield of about 6.3 percent. Analysts believe these levels look attractive for long term investors.

According to AHL Research, the market’s performance this week will largely depend on global political developments and the outcome of the Monetary Policy Committee meeting scheduled for today. The research firm also said that despite recent market pressure, some sectors still show strong fundamentals and stable growth potential.

Other Asian stock markets plunged Monday as oil prices soared 30% on fears about supplies from the Middle East as the US-Israeli war against Iran continued 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.

Global oil prices soar amid Middle East tensions

West Texas Intermediate, the main US oil benchmark, jumped as much as 30% to hit a high of $118.88 per barrel, while Brent spiked 28% to as much as $118.73.

Since the beginning of the war, WTI is up more than 75% and Brent more than 60%.