The Pakistan Stock Exchange witnessed sharp volatility on Monday, with the benchmark KSE-100 Index plunging more than 1,700 points amid reports that Iran would not take part in upcoming talks in Islamabad.
The market opened on a weak note, with the index falling steeply in early trading due to negative external cues and rising geopolitical uncertainty.
However, the decline proved temporary as institutional buying helped the market recover, briefly pushing it into positive territory.
Despite the rebound, the index closed at 172,196.70, down 1,742.31 points, or 1%.
This downturn followed a strong performance last week, when the PSX maintained a bullish trend. Improved geopolitical sentiment and investor confidence drove broad-based gains, with the KSE-100 rising 4%, an increase of 6,748 points, to settle at 173,939.
Meanwhile, global oil markets saw a sharp surge. Prices jumped over 6% in early Monday trading amid concerns that a ceasefire between the United States and Iran could unravel after the reported seizure of an Iranian cargo ship and continued disruption to shipping through the Strait of Hormuz.
Brent crude rose $5.51, or 6.1%, to $95.89 per barrel, while West Texas Intermediate gained $5.46, or 6.5%, to reach $89.31.
