PSX loses 2,321 points on geopolitical fears
The Pakistan Stock Exchange (PSX) experienced a significant decline of over 2,300 points due to investor anxiety over Middle East geopolitical tensions and rising oil prices. Market sentiment was further dampened by profit-taking and concerns regarding energy supply disruptions.
Why it matters
Geopolitical instability in the Middle East is causing direct volatility in emerging market equities, highlighting the interconnectedness of global energy and finance.
The surge in oil prices amid growing uncertainty in the Middle East reignited fears of supply disruptions, which could increase inflationary pressures, especially in countries heavily dependent on energy imports through the Strait of Hormuz, including Pakistan.
Topline Securities Ltd said the index remained under pressure, closing at 175,802.79 points, down 2,320.78 points, or 1.3 per cent. The negative sentiment was largely driven by escalating geopolitical tensions , as reports indicated that the US and Iran had intensified attacks beyond military targets, raising concerns about a broader conflict and the absence of any agreement regarding the strait.
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