KSE-100 drops over 1,200 points in early trade

KARACHI – The benchmark KSE-100 Index at the Pakistan Stock Exchange plunged more than 1,200 points during early trading on Monday as escalating tensions in the Middle East triggered heavy selling across key sectors. At 9:34am, the KSE-100 Index was recorded at 164,366.67 points, showing a decline of 1,229.40 points, or 0.74 percent, from the previous close. Market activity remained negative as investors offloaded shares in automobile assemblers, cement, commercial banks, fertiliser, oil and gas exploration companies, oil marketing firms, power generation and refinery sectors. Major index-heavy stocks, including ARL, HUBCO, MARI, OGDC, PPL, POL, HBL, MEBL and UBL, traded in the red. The decline followed a sharp rise in global oil prices after reports of a drone strike targeting the UAE’s Barakah nuclear facility pushed crude prices above $110 per barrel. According to market analysts at Behtari Capital, the renewed geopolitical tensions have increased pressure on energy-importing economies such as Pakistan, resulting in cautious investor sentiment. During the previous week, the Pakistan stock market also remained under pressure, with the KSE-100 Index shedding 5,519.75 points, or 3.2 percent, to close at 165,596.06 points amid persistent uncertainty linked to the Middle East situation. Global markets also witnessed volatility on Monday as Asian equities declined following fresh drone attacks in the Gulf region, which pushed oil prices and bond yields higher. Investors are additionally monitoring upcoming earnings results from Nvidia amid concerns regarding the sustainability of the artificial intelligence-driven rally in global markets. Meanwhile, reports said a drone strike caused a fire at a nuclear power facility in the UAE, while Saudi Arabia claimed it had intercepted three drones. US President Donald Trump also urged Iran to quickly move towards a diplomatic agreement. The Strait of Hormuz, through which nearly 20 percent of global oil trade passes, remai