PSX opens week in the red, plummets 2,000 points during intraday trade

AI Summary

The Pakistan Stock Exchange dropped sharply by 2,000 points during intraday trading, influenced by escalating military conflicts between the US and Iran over the Strait of Hormuz. This downturn is accompanied by a surge in oil prices, reflecting rising geopolitical risks impacting inflation globally.

The Pakistan Stock Exchange (PSX) began the week in the red, with the benchmark index plummeting by 2,000 points on Monday during intraday trade. The KSE-100 index had lost 2,215.27 points at 10:19am, to stand at 180,026.5 points from the previous close of 182,241.77 points. Mettis Global, a web-based financial portal, said market sentiment remained under pressure after the US and Iran exchanged fresh military strikes in an escalating contest over control of the Strait of Hormuz. Oil prices also jumped more than four per cent on Monday after due to the renewed fighting. On Friday, value-hunting had helped the stock market reverse a three-session losing streak amid growing geopolitical concerns in the Middle East and the fallout on the global economy from an oil supply disruption fuelling inflationary pressure in countries reliant on supplies from the Strait of Hormuz. More to follow