KARACHI: The Pakistan Stock Exchange (PSX) witnessed a significant downturn on Monday as sustained selling pressure, driven by escalating geopolitical tensions, pushed the benchmark KSE-100 index sharply lower. The index closed at 168,953.71, shedding 1,525.24 points, or 0.89%, after a highly volatile session that saw the index swing widely between an intra-day low of 168,432.46 and a high of 169,360.55. Despite an initial recovery attempt, renewed selling pressure dragged the market back into negative territory by the end of the day.
Widespread Selling Across Sectors
Major sectors, including commercial banks, oil and gas exploration companies, oil marketing firms, cement manufacturers, auto assemblers, power producers, and refineries, all closed lower. The decline was broad-based, with heavyweight stocks bearing the brunt of the sell-off.
Market Analysis
Topline Securities noted that the local bourse experienced a choppy trading session, mirroring weakness in international equity markets. The benchmark index remained under pressure throughout, plunging as much as 2,046 points intra-day before settling at 168,954. The downward movement largely tracked global market trends amid heightened geopolitical uncertainty, driven by violations of the Middle East ceasefire and renewed attacks, which reignited concerns across financial markets and kept risk appetite subdued.
On the index front, heavyweight stocks remained under pressure, with United Bank, Engro Holdings, Fauji Fertiliser, Habib Bank, Hub Power, and Pakistan Petroleum collectively erasing 561 points. Market participation dropped compared to the previous session, with total traded volumes coming in at 658 million shares, according to Topline.
Investor Sentiment Weak
KTrade Securities mentioned that the KSE-100 extended its decline and shed 1,525 points amid broad-based selling pressure across key sectors. Investor sentiment remained weak throughout the session as concerns over escalating geopolitical tensions in the Middle East overshadowed local developments. Trading activity also stayed subdued. Selling was concentrated in heavyweight sectors, with major negative contributions from UBL, Engro Holdings, Fauji Fertiliser, HBL, Pakistan Petroleum, Hub Power, Lucky Cement, and Meezan Bank.
