PSX: KSE-100 down over 400 points amid US-Iran conflict

Business Recorder reported selling pressure on the Pakistan Stock Exchange on Monday as Middle East tensions escalated, with the KSE-100 index shedding more than 400 points during the session. At 1:54pm the index stood at 177,292.33, a fall of 404.17 points, or 0.23 per cent. Losses were broad across automakers, cement makers, banks, exploration firms, oil marketing companies and power producers. Index heavyweights HBL, MCB, MEBL, MARI, OGDC, PPL, PSO and HUBCO were also trading in negative territory.

The benchmark had gained 530 points, or 0.3 per cent, the previous week, closing at 177,696.52 amid the US-Iran deadlock and doubts over reopening the Strait of Hormuz. On Monday, Asian shares retreated as fresh US-Iran fighting pushed oil higher, with Brent crude up 1.4 per cent to $89.38 a barrel after American strikes on two Iranian launchers at Larak island on Sunday. Japan's Nikkei dropped 2.1 per cent and South Korea's shares declined 2.4 per cent, while the MSCI Asia-Pacific index excluding Japan fell 0.7 per cent.

Bond yields stayed elevated as the probability of a September US rate increase rose to 57 per cent. Attention now turns to the August payrolls report on Friday and consumer price figures due September 11. Analysts expect 58,000 jobs after July's sharp drop of 23,000, with unemployment seen at 4.1 per cent.