Karachi: Pakistan Stock Exchange (PSX) experienced a bearish trend at the start of the trading week, with the benchmark KSE-100 Index falling by 595 points in early trading on Monday.
The index was seen trading at 149,802 points, reflecting selling pressure across key sectors. Earlier in the session, however, the market showed initial strength, with the index climbing to an intraday high of 151,453 points before reversing into negative territory.
It is important to note that the KSE-100 Index had closed at 150,398 points at the end of the previous trading session last week, indicating a decline in early trading activity today.
GLOBAL ENERGY MARKETS
Crude oil prices climbed on Monday amid ongoing concerns over supply disruptions in the Middle East due to the US-Israeli conflict with Iran. By 00:57 GMT, Brent crude futures had risen $1.71, or 1.6%, to $110.74 per barrel, while US West Texas Intermediate (WTI) crude futures gained $0.71, or 0.6%, reaching $112.25 per barrel.
On Thursday, the final trading day before the Good Friday holiday, WTI surged more than 11%, and Brent jumped nearly 8% in volatile trading, marking their largest absolute price increase since 2020, after US President Donald Trump vowed to continue strikes on Iran.
The Strait of Hormuz, a vital route for oil and petroleum exports from Iraq, Saudi Arabia, Qatar, Kuwait, and the United Arab Emirates, remains largely closed due to Iranian attacks on shipping following the outbreak of war on February 28.
As a result, refiners are seeking alternative crude supplies, especially physical cargoes for the US and the UK North Sea.
“Global buyers are bidding aggressively for (US) Gulf Coast barrels, and Brent is rallying even faster,” the Schork Group said in a client note on Monday.
On Sunday, Trump escalated pressure on Tehran in an expletive-filled social media post, warning that he would target Iran’s power plants and bridges on Tuesday if the Strait of Hormuz is not reopened.
Despite this, some vessels, including an Omani-operated tanker, a French-owned container ship, and a Japanese-owned gas carrier, have crossed the Strait since Thursday, reflecting Iran’s policy of allowing passage for ships from nations it considers friendly.
The conflict shows no immediate signs of resolution, as Iran has informed mediators that it is not ready to meet US officials in Islamabad, Pakistan, and attempts to negotiate a ceasefire have stalled, according to the Wall Street Journal on Friday.
On Sunday, OPEC+, which includes members of the Organisation of the Petroleum Exporting Countries and allies such as Russia, agreed to a modest output increase of 206,000 barrels per day for May.
However, the move is largely symbolic, as several key producers are unable to boost production due to the ongoing conflict.
Russian supplies have also been affected by Ukrainian drone attacks on its Baltic Sea export terminal, though media reports on Sunday indicated that the Ust-Luga terminal resumed loading on Saturday after several days of disruption.
