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Pakistan stock market crashes 1%, down 3.5% this week as US-Iran war dents investor confidence — More pain ahead?

Pakistan stock market faces turmoil due to elevated crude oil prices linked to Middle East conflicts. The flagship KSE 30 index has declined 1.4% drop, taking the weekly loss to 3.5% and the monthly fall to 9%.

Mar 13, 2026 &03101313202631; 08:10 UTC www.livemint.com Trending 5/5

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Negative for markets

Sentiment score: -75/100

High impact Short-term (days)

WHAT THIS MEANS

Pakistan's stock market declined 1% today with the KSE 30 index down 1.4%, reflecting broader regional instability from US-Iran tensions and elevated crude oil prices. Weekly losses reached 3.5% and monthly declines hit 9%, signaling sustained investor risk aversion in emerging markets exposed to geopolitical and energy shocks.

AI CONFIDENCE

85% Very high

SENTIMENT GAUGE

NEWS POWER SCORE

AFFECTED ASSETS

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KSE-30

KSE-30Index

Expected to decline

Geopolitical tensions in Middle East driving crude oil prices higher, impacting Pakistan's import-dependent economy and investor sentiment

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Oil (WTI Crude)

CL=FCommodity

Expected to rise

US-Iran conflict escalation pushing crude oil prices higher, creating headwinds for emerging market equities

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Euro / US Dollar

EURUSDCurrency

High volatility expected

Risk-off sentiment from geopolitical tensions typically strengthens USD as safe-haven currency

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S&P 500

^GSPCIndex

High volatility expected

US equity markets sensitive to Middle East geopolitical risks and crude oil price volatility

PRICE HISTORY

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⚡ SUGGESTED ACTION

Avoid long positions in Pakistan-exposed equities and emerging market indices until geopolitical tensions ease. Consider hedging with crude oil long positions or USD strength plays, while monitoring for potential capitulation signals that could present contrarian entry opportunities.

KEY SIGNALS

Geopolitical risk premium embedded in crude oil pricesEmerging market capital flight to safe-haven assetsSustained weekly and monthly downtrend indicating loss of investor confidenceEnergy import dependency vulnerability in Pakistan economy

SECTORS INVOLVED

EnergyFinancialsConsumer DiscretionaryEmerging Markets

Analysis generated on Mar 16, 2026 at 15:15 UTC

Disclaimer: This analysis is generated by artificial intelligence for informational purposes only and does not constitute financial advice, investment recommendation, or solicitation. Original reporting by Livemint. Always conduct your own research and consult a qualified financial advisor before making investment decisions.

Pakistan stock market crashes 1%, down 3.5% this week as US-Iran war dents investor confidence — More pain ahead?

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