Pakistan Stock Market plunges thousands of points in minutes

The week began on a grim note at the Pakistan Stock Exchange (PSX) on Monday, as escalating Middle East tensions triggered a massive sell-off, sending the benchmark index plunging more than 9,000 points in early trading.

The Pakistan Stock Exchange plunged hard as the KSE-100 index shed 9,453 points or 6 percent to close at 148,042.88. This sharp drop from 157496.10 triggered an automatic trading halt under PSX risk rules. The index swung wildly between a high of 150,174, down 4.65 percent, and a low of 144,929—down nearly 8 percent. Last week alone, it lost 10,566 points, or 6.3 percent, due to the raging US-Israel-Iran war.

Analyst AAH Soomro pinned the panic on war premiums and oil topping $100 per barrel. This combo wrecks macro stability with no ceasefire in sight. Everyone watches the State Bank of Pakistan’s key meeting today for relief signals. Trading froze at 9:22 am after a 5 percent KSE-30 drop. Orders cancelled auto-style; markets reopened at 10:27 am after a pre-open session.

Experts predict cautious play this week. Markets weigh regional fires, rising inflation, and rate moves. At 8.1 times price-to-earnings and a 6.3 percent dividend yield, stocks look cheap versus history. AHL Research ties weekly fate to geopolitics and today’s monetary policy committee call. Strong sectors hold up despite shakes.

Asia bled too as oil blasted 30 percent higher on Middle East supply scares. The US-Israel-Iran clash drags into week two. US President Donald Trump demands Iran’s total surrender to end it, calling price spikes a small cost to crush nuclear threats. West Texas Intermediate soared 30 percent to $118.88 per barrel—up 75 percent since war start. Brent hit $118.73, up 60 percent. Iran hit back at Gulf oil nations, fueling the surge to 2022 peaks. Investors flee tech bubbles and AI spending hype. PSX halt buys time, but oil woes and war keep pressure on.