Karachi, July 13, 2026: The Pakistan Stock Exchange (PSX) started the week on a bearish note, with the benchmark KSE-100 Index plunging more than 2,300 points on Monday as escalating hostilities between the United States and Iran dampened investor confidence and fueled concerns over regional stability.
The benchmark index dropped sharply after the opening bell, touching an intraday low of 179,448.52 points, down 2,793.25 points from the previous close of 182,241.77.
The market recovered some of its losses during intraday trading, climbing to a high of 181,148.26 points by around 2:30pm. However, renewed selling pressure in the latter half of the session dragged the index lower, with the KSE-100 settling at 179,927.04 points, down 2,314.73 points, or 1.27%.
According to Mettis Global and Topline Securities, investor sentiment remained under pressure after the United States and Iran exchanged fresh military strikes, intensifying concerns over the strategic Strait of Hormuz and raising fears of a broader regional conflict.
The heightened tensions also pushed international oil prices up by more than three percent, adding to market uncertainty.
Topline Securities said the renewed conflict had triggered a risk-off sentiment among investors by increasing concerns over global energy supplies and regional stability.
The brokerage added that the decline was further intensified by widespread profit-taking after the market’s recent rally, as investors opted to lock in gains despite Pakistan’s improving macroeconomic outlook.
Trading activity remained relatively subdued during the session, with total traded volume declining to 845 million shares and traded value recorded at Rs35.5 billion. Cnergyico PK Limited (CNERGY) emerged as the volume leader, with 158 million shares traded.
Awais Ashraf, Director of Research at AKD Securities, said investor confidence had weakened amid the escalating military confrontation between Washington and Tehran.
He noted that the conflict had reduced shipping traffic through the Strait of Hormuz to a five-week low while also casting uncertainty over the future of the interim peace agreement signed between the two countries last month.
Ashraf said heavyweight stocks accounted for much of the benchmark index’s decline despite recording relatively modest losses of between one and 1.7%.
He added that the refinery sector remained resilient on expectations that the government would soon announce a new refinery policy, which is expected to facilitate long-awaited upgrades and capacity expansion in the industry.
The latest decline came after the PSX ended a three-session losing streak on Friday, when value buying helped the market recover despite persistent geopolitical concerns over the Middle East and the potential economic impact of disruptions to oil supplies through the Strait of Hormuz.
