KARACHI: PSX Crash hit the Pakistan Stock Exchange on Monday as the benchmark KSE-100 Index fell more than 2,300 points amid rising tensions in the Middle East.

The KSE-100 Index dropped to an intraday low of 179,448.52 points shortly after trading began. That marked a decline of 2,793.25 points from Friday’s close of 182,241.77.

However, the market recovered part of its losses during the session. By 2:30pm, the index climbed to an intraday high of 181,148.26 points.

Later, selling pressure returned and erased the recovery.

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The benchmark index closed at 179,927.04 points. It lost 2,314.73 points, or 1.27 per cent, from the previous session.

According to Mettis Global and Topline Securities, investors reacted to renewed military exchanges between the United States and Iran.

As a result, concerns over a wider regional conflict increased.

The renewed tensions also pushed international oil prices more than three per cent higher on Monday.

Topline Securities said the conflict fuelled risk-averse sentiment across global and local markets.

Moreover, investors booked profits after the market’s recent rally.

The brokerage said profit-taking added to the decline despite improving macroeconomic indicators.

Trading activity also remained weak.

Total traded volume stood at 845 million shares.

Meanwhile, traded value reached Rs35.5 billion.

Cnergyico PK Limited led the volume chart with 158 million shares traded.

Awais Ashraf, Director of Research at AKD Securities, said investor confidence weakened because of the latest US-Iran tensions.

He said lower shipping traffic through the Strait of Hormuz also worried investors.

According to Ashraf, the disruption raised fresh doubts about the future of the interim peace agreement signed last month.

He added that heavyweight stocks drove most of the benchmark index’s decline.

Meanwhile, refinery stocks outperformed the broader market.

Investors expect the government to announce a new refinery policy.

Analysts believe the policy could support long-awaited upgrades and expansion projects.

On Friday, bargain hunting helped the PSX end a three-session losing streak despite growing geopolitical uncertainty in the Middle East.