By Staff Reporter
KARACHI: Pakistan’s benchmark KSE-100 Index suffered its second-largest single-day drop on record on Monday, plunging 11,015.96 points, or 6.99%, as a surge in global oil prices fueled by the intensifying US-Israeli conflict with Iran hammered investor sentiment and amplified worries over the country’s fragile, import-dependent economy.
The gauge closed at 146,480.14, down from Friday’s finish of 157,496.10. It is the biggest decline since a 16,089-point rout earlier this year on March 2 — with all three of the index’s largest one-day falls now occurring in 2026. The slide also extended last week’s 6.3% loss, or 10,566 points, which was already driven by the same regional conflict.
Trading was halted shortly after the open when the KSE-30 Index fell 5% from the prior close, triggering a suspension of all equity markets under Pakistan Stock Exchange rules. The benchmark had dropped as much as 9,780.15 points, or 6.21%, to 147,715.95 around 9:22 a.m. local time. After a roughly one-hour pause — with pre-open at 10:22:15 a.m. and trading resuming at 10:27:15 a.m. — the index slid further to an intraday low of 144,119.43, down 8.49%, before a late partial recovery.
The session high was 150,174.09.Volume totaled 378 million shares valued at Rs33 billion. Among the heaviest movers, K-Electric Ltd. tumbled 7.81% to Rs7.20 on 127 million shares. First National Equities Ltd. plunged 12.21% to Rs1.15, while Bank of Punjab slumped 10.01% to Rs25.45.
The rout unfolded as oil prices rocketed higher on fears of prolonged supply disruptions from the Middle East. Brent crude is on track for its biggest one-day gain in years, surging as much as 28% to $118.73 a barrel, while West Texas Intermediate jumped as much as 30% to $118.88 — levels not seen since the Russian invasion of Ukraine in 2022. Both benchmarks have climbed more than 25% on the day alone and are up 60% and 75% respectively since coordinated US-Israeli strikes on Iran began Feb. 28. Gold fell about 2% as investors fled to the safety of energy assets.
US President Donald Trump said over the weekend that only Iran’s “unconditional surrender” would end the conflict, calling the oil-price spike a “small price to pay” to eliminate Tehran’s nuclear threat. With no ceasefire in sight and Iran launching retaliatory strikes on Gulf crude producers, fears mounted that the war could drag on.
The energy shock is landing squarely on Pakistan, where petroleum products account for the largest slice of the import bill. The country imported $16 billion worth of such products last year out of a total $58.4 billion in imports, official data show. On Friday the government imposed its biggest-ever fuel-price increase, raising petrol and high-speed diesel by Rs55 a liter each.
“The pressure is obvious due to war premium and $100-plus oil prices derailing macro stability with no signs of ceasefire,” said AAH Soomro, an independent investment and economic analyst. Ahsan Mehanti, chief executive of Arif Habib Commodities, said the sell-off reflected “heightened investor fears over inflation and prevailing economic uncertainty after Brent crude reached the price of $119 per barrel.”
Topline Securities noted that investor sentiment remained “fragile” as crude climbed above $110 a barrel, triggering “strong reactions across international energy and financial markets.” The brokerage described participation as active. The turmoil extended across Asia, where other equity markets also dropped sharply on the oil surge.
Analysts at AHL Research said this week’s KSE-100 performance will hinge largely on geopolitical developments. They noted the index trades at relatively attractive valuations — about 8.1 times forward earnings with a dividend yield near 6.3% — compared with its historical levels, even as sectors with solid fundamentals face near-term volatility. Investors will now watch whether any signs of de-escalation emerge or whether the oil shock forces further policy tightening in Islamabad. For now, the combination of a war premium on energy and domestic macroeconomic strain has left Pakistan’s market firmly on the defensive.
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