KARACHI: The Pakistan Stock Exchange witnessed a sharp decline on Monday as escalating tensions in the Middle East triggered panic selling among investors.

The benchmark KSE-100 Index plunged 9,453.22 points (6%), falling to 148,042.88 points from the previous close of 157,496.10.

Trading Halted After Sharp Fall

Following the massive decline, trading at the stock exchange was temporarily suspended for 45 minutes as market volatility intensified.

Last week, the benchmark index had already fallen 10,566 points (6.3%), reflecting growing investor concerns over the US-Israel war with Iran and its potential economic impact.

Global Markets Also Under Pressure

Stock markets across Asia also recorded losses as global oil prices surged amid fears of supply disruptions in the Middle East.

Crude oil prices jumped sharply:

West Texas Intermediate rose as much as 30% to $118.88 per barrel

Brent Crude climbed nearly 28% to $118.73 per barrel

Since the start of the conflict, WTI has risen over 75%, while Brent crude has increased more than 60%.

Market Outlook

Analysts expect cautious trading during the week as investors evaluate the impact of geopolitical tensions, inflation trends, and the outcome of the upcoming Monetary Policy Committee (MPC) meeting.

According to research analysts, the market currently trades at a price-to-earnings ratio of around 8.1 times with a dividend yield of about 6.3%, which some experts consider attractive despite the ongoing volatility.

Experts say the future direction of the market will largely depend on geopolitical developments in the Middle East and domestic economic policy decisions.