PSX dips 1,156 points as early rally fizzles out

Fragile US-Iran ceasefire, high crude prices dampen investor sentiment

KARACHI:

Trading remained subdued at the Pakistan Stock Exchange (PSX) on Monday as investors were wary of building fresh positions amid persistent geopolitical uncertainty and mixed global market cues. By the close of trading, the KSE-100 index lost more than 1,150 points.

Keeping in view the choppy Asian markets, where optimism over artificial intelligence-driven growth was offset by mounting cost pressures, the local bourse remained volatile throughout the session. Sentiment was also influenced by the fragile US-Iran ceasefire and concerns over rising oil prices that kept investors on edge.

In the morning, the PSX opened on a positive note, with the index climbing above the 180,000 mark and touching the intra-day high of 180,272. However, selling pressure intensified during the latter half, dragging the index down to the intra-day low of 178,331 before it recovered slightly by the end of trading. The benchmark KSE-100 index settled at 178,414.80, down 1,156.47 points, or 0.64%.

Buying interest was initially observed in cement, commercial banks, oil and gas exploration, oil marketing companies, power generation and refinery stocks. However, extensive profit-taking and cautious investor positioning outweighed early gains.

"Selling pressure returned to the PSX amid cautious investor sentiment, where the KSE-100 index closed at 178,415, down 1,156 points," commented JS Global analyst Mubashir Anis Naviwala.

The market traded in the red for most of the session, with selling intensifying in the final hour. Profit-taking was witnessed in several heavyweight sectors despite healthy trading. Total volumes stood at 869 million shares, reflecting active investor participation.

Also, investors remained cautious ahead of key economic developments and due to global market cues. "Market participants will continue to monitor macroeconomic indicators and corporate news for near-term direction," he said.

According to Arif Habib Limited (AHL), the KSE-100 began the week on a weak note, falling 0.64% day-on-day. Only 28 shares rose while 72 fell, with Interloop (+8.83%), Engro Holdings (+0.80%) and Kohat Cement (+3.75%) contributing the most to the index gains. On the flip side, Fauji Fertiliser (-1.10%), Hub Power (-1.71%) and Oil & Gas Development Company (-1.40%) were the biggest index drags.

Meanwhile, Pakistan announced that it had carried out a ground operation and air strikes along its border with Afghanistan on Sunday and Monday, killing 29 militants in response to earlier attacks, as cross-border tensions flared up.

Also, Petroleum Minister Ali Pervaiz Malik revealed that Pakistan was considering purchasing cheaper Iranian oil and gas. In a bid to rescue a stagnant automotive industry and provide relief to the middle-class buyers, the government has drafted a five-year auto policy (2026-31) featuring aggressive reductions in import duties and taxes, AHL mentioned. It expects support for the index at 175k and aggressive gains once the consolidation period comes to an end.

Overall trading volumes increased to 869.4 million shares compared to the previous tally of 851.3 million. The value of traded shares stood at Rs44 billion.

Shares of 494 companies were traded. Of these, 151 stocks jumped, 320 fell and 23 remained unchanged. Sitara Petroleum was the volume leader with trading in 104.4 million shares, losing Rs0.92 to close at Rs19.49. Foreign investors sold shares worth Rs449.8 million, the National Clearing Company reported.