An hour-long halt in trading at Pakistan Stock Exchange (PSX) on Monday could not make an impact as the share prices fell like nine pins with investors going bonkers as Middle East war continued to take toll on the bourses around the world, reported 24NewsHD TV channel.
The PSX’s benchmark KSE-100 index plummeted 13,157.62 points or 8.35 percent, by 10:50am after trading resumed, which was halted earlier around 9:20am, after the index fell by 9,780.15 points, triggering a market suspension.
According to a notice issued by the PSX authorities, the market halt was triggered after the KSE-30 index fell 5pc from its previous trading day’s close. In line with PSX regulations, all equity-based markets were subsequently suspended.
At 11:10 am, the PSX’s benchmark KSE-100 index plunged by 12,653.26 points or 8.74 percent to 144,842.84.
At the close of business, the index was down by 11,015.96 points or 7.52 percent to 146,480.14.
Across-the-board selling pressure was observed in key sectors, including automobile assemblers, cement, commercial banks, oil and gas exploration companies, OMCs, power generation and refinery. Index-heavy stocks, including MCB, MEBL, NBP, MARI, OGDC, PPL, PSO, SNGPL, SSGC and HUBCO, traded in the red.
On the other hand, oil prices surged about 30% on Monday, hitting their highest since July 2022, as the expanding US-Israeli war with Iran led some major Middle Eastern oil producers to cut supplies and on fears of prolonged disruption to shipping through the Strait of Hormuz chokepoint.
Iraq and Kuwait have begun cutting oil output, adding to earlier liquefied natural gas reductions from Qatar, as the war blocked shipments from the Middle East.
Analysts predict the United Arab Emirates and Saudi Arabia will have to also cut output soon as they run out of oil storage.
The war could leave consumers and businesses worldwide facing weeks or months of higher fuel prices even if the week-old conflict ends quickly, as suppliers grapple with damaged facilities, disrupted logistics and elevated risks to shipping.
Earlier on Friday, selling pressure overwhelmed the Pakistan Stock Exchange (PSX), with the benchmark KSE-100 Index nosediving by over 3,700 points.
At close of business, the index settled at 157,496.10, a decrease of 3,714.57 points or 2.30%.
In the futures market, 567 companies recorded trading, of which 105 increased, 311 decreased, and 151 remained unchanged.
Reporter Kavish Memon