PSX closes above 151,000 mark after volatile session

KSE-100 dropped over 2,400 points at midday amid concerns over further escalation between US and Iran

KARACHI:

The Pakistan Stock Exchange (PSX) opened the week with heightened volatility, reflecting investor anxiety over geopolitical tensions in the Gulf.

The benchmark KSE-100 index swung in both directions on Monday as traders reacted to uncertainty surrounding Iran versus US-Israel war and global oil market jitters on potential supply disruption.

In the morning, trading began in a tense environment, with the index dropping sharply as investors moved cautiously. By 11:34am, the KSE-100 had fallen 2,371.39 points, or 1.58%, from the previous close of 150,398.71, amid concerns over further escalation between the US and Iran.

Analysts attributed the early losses to investor nervousness following a threat posted by US President Donald Trump on Truth Social, asking Iran to reopen the Strait of Hormuz—a critical passage for global oil shipments.

The conflict-driven uncertainty has already contributed to record-high oil prices and disrupted Gulf trading, further intensifying market pressure in Pakistan.

Despite the turbulent start, post-midday session saw some improvement and the index managed to recover some of its early losses by the close of trading. The KSE-100 index ended the day at 151,207.82 points, up 809.11 points, or 0.54% from the previous session, as cautious buying emerged in late trading.

The day was also marked by United Bank recording a higher surplus on revaluation of assets, causing a dent to the stability. Market analysts noted that volatility is likely to persist in the coming days, with investors closely monitoring developments in the Middle East and their potential impact on global energy prices.

Also Read: PSX ends in red amid oil shock

“Investors are cautious about the conflict between US and Iran that has caused the oil prices to surge to record high and Gulf trading to halt due to Strait of Hormuz closure,” AKD Securities Director Research Mohammed Awais Ashraf told The Express Tribune.

Post midday, investors sentiment turned positive on hopes of ceasefire between US and Iran after Pakistan shared the draft with two countries. However, UBL’s negative performance driven by concerns over potential pressure on its book value in the event of a rate hike has partially offset the positive impact, Ashraf added.

KTrade Securities wrote in its market wrap that the KSE-100 index closed at 151,207 points, up 809 points (+0.54% DoD), recovering from early weakness to end in positive. Initial sentiment remained cautious amid geopolitical uncertainty and oil hovering near $110 per barrel, alongside mixed Asian market cues.

Intra-day direction turned positive after reports that Pakistan is mediating between the US and Iran, with a proposed framework shared with both sides. This development eased immediate tensions, supporting a recovery into the close, while oil prices also softened slightly towards the $107–108 per barrel range.

Sector-wise, oil & gas, cement, select banks, power, and fertilisers led gains, with LUCK, HUBC, OGDC, MCB, FFC, and MARI contributing positively.

Market activity remained steady, with volumes at 270 million shares, led by Cynergy Pk recording 57 million shares Near-term outlook hinges on geopolitical developments over the next 24–48 hours, particularly US-Iran dynamics and oil price movement, KTrade added.