PSX falls 1,525 points amid geopolitical jitters

Selling pressure across key sectors drags KSE-100 lower as investor sentiment weakens

KARACHI:

Pakistan Stock Exchange (PSX) on Monday came under sustained selling pressure as geopolitical concerns prompted investors to offload their holdings, which dragged the benchmark KSE-100 index sharply lower during intra-day trade.

At close, the index lost 1,525.24 points, or 0.89%, to settle at 168,953.71 in a volatile session that saw the market swing widely. The index fell to the intra-day low of 168,432.46 during early trade before rebounding to the session's high of 169,360.55. However, the recovery lacked strength, where renewed selling pressure pulled the benchmark back into the negative territory.

Major sectors faced stock offloading including commercial banks, oil and gas exploration, oil marketing, cement manufacturers, auto assemblers, power producers and refineries, which all closed lower.

Topline Securities commented that the local bourse witnessed a choppy trading session, mirroring weakness across international equity markets as escalating geopolitical tensions dampened investor sentiment. The benchmark index remained under pressure throughout the session, plunging to the intra-day low of 2,046 points before settling at 168,954, down 1,525 points. The downward movement largely tracked global market trends amid heightened geopolitical uncertainty, driven by violations of 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, Topline added. 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. The major negative contribution came from UBL, Engro Holdings, Fauji Fertiliser, HBL, Pakistan Petroleum, Hub Power, Lucky Cement and Meezan Bank.