By Admin 
Pakistan Stock Market: The beginning of the week was very bad for Pakistan’s stock market. Within the first hour of early trading, a decline of about 9% was recorded in the KSE-100 Index and the index went down by almost 15,000 points. Due to sharp selling, the KSE-30 Index slipped below the circuit limit, after which trading had to be halted for some time. This sudden fall created panic among investors.
Why did the market fall?
According to analysts, this decline is not due to the quarterly performance of the companies, but due to geopolitical tension. The increasing military tension between Iran and Israel in the Middle East has created uncertainty in the entire region. Recent attacks and retaliation have reduced investors’ risk appetite, which has also impacted regional markets.
Why greater impact on Pakistan?
Pakistan is geographically close to Iran and regional stability also has a direct impact on it in terms of energy supply. If the tension in West Asia continues for a long time, the supply of oil and gas may be disrupted. Import bill may increase. Inflation and current account pressure may increase. These fears prompted investors to sell on a large scale.
In which sectors there is more decline?
The decline was not limited to just one or two sectors, but almost all major sectors remained under pressure:
Banking Shares: MCB Bank Habib Bank Limited Meezan Bank
Energy Sector: Pakistan Petroleum Limited Oil and Gas Development Company Pakistan Oilfields Limited
Apart from this, widespread selling was also recorded in fertilizer, cement, power and automobile sectors. The direction of the market will now largely depend on the level of tension in West Asia and how much oil prices stabilize. If the geopolitical situation worsens further, markets across the region, including Pakistan, may continue to remain volatile.
Read this also: Due to heavy tension in West Asia, there is panic in the Indian market, know the 4 major reasons for the market crash.