PSX: KSE-100 down over 400 points amid US-Iran conflict

The Pakistan Stock Exchange (PSX) witnessed a significant drop of more than 400 points in the opening minutes of trading on Monday, amid mounting tensions between the United States and Iran. At 9:40am, the KSE-100 Index was at 177,242.03, down by 454.47 points or 0.26%. Key sectors, such as automobile assemblers, cement, commercial banks, oil and gas exploration companies, OMCs, and power generation, experienced selling pressure.

Notably, index-heavy stocks like HBL, MCB, MEBL, MARI, OGDC, PPL, PSO, and HUBCO were trading in the red. In the previous week, the PSX had remained range-bound, with the KSE-100 Index gaining 530 points or 0.3%, as uncertainty surrounding the US-Iran deadlock and the Strait of Hormuz situation kept investors cautious. The KSE-100 Index closed at 177,696.52 points.

Globally, share markets experienced a decline on Monday, with fresh fighting between the US and Iran causing oil prices to rise and bond yields to stay elevated. Brent futures increased by 1.4% to $89.38 a barrel after US forces attacked two of Iran’s launchers on its Larak island on Sunday. The probability of a September rate hike rose to 57% after markets reacted to the situation, pushing short-term Treasury yields sharply higher and flattening the curve.

Analysts predict a job growth boost of 58,000 following July’s unexpected drop of 23,000, with unemployment remaining at 4.1%. This news is an updated report on the current market situation.