PSX plunges 2,288 points amid political tensions

Government-PTI standoff weighs on sentiment as falling oil prices fail to calm investors

KARACHI:

The Pakistan Stock Exchange (PSX) came under intense selling pressure on Monday, with the benchmark KSE-100 index plunging 2,288 points as renewed political tensions at home weighed heavily on investor sentiment, while falling international oil prices failed to provide relief.

The benchmark settled at 165,867.32, down 2,288.17 points, or 1.36%, from the previous close of 168,155.49. The index hit an intraday high of 167,918.37 and a low of 165,764.21, reflecting persistent volatility throughout the session.

The sell-off came amid heightened domestic political anxiety after government- Pakistan Tehreek-e-Insaf (PTI) talks collapsed without a breakthrough, with the PTI pressing ahead with its march towards Islamabad. Differences over counterterrorism policy and access to jailed PTI founder Imran Khan remained among the key sticking points, deepening concerns over renewed political confrontation.

Read More: Oil slips as Middle East crude exports rise, G7 to release stocks

The market remained under pressure despite a decline in international oil prices. Crude prices fell as rising Middle East exports and the planned release of oil stocks by G7 nations boosted supply prospects, offsetting concerns over further damage to Gulf oil infrastructure as the US-Israeli war on Iran drags on.

The decline in oil prices, which could ease pressure on Pakistan’s external account and inflation outlook, failed to offset the impact of domestic uncertainty on investor confidence.

According to Arif Habib Limited (AHL), 8 shares rose while 91 fell, with Pakistan Oilfields (+1.16%), Tariq Glass Industries (+0.81%) and Highnoon Laboratories (-0.23%) contributing the most to index gains. Alternatively, UBL (-1.57%), Engro Holdings (-1.77%) and HBL (-2.34%) were the biggest index drags.

Meanwhile, the party of Pakistan's former PM Imran Khan have begun a march towards Islamabad after talks with the government broke down over demands including access to the jailed leader.

Authorities have placed shipping containers and other roadblocks around Islamabad to prevent demonstrators from entering the capital
Yemen's government launched a full-scale military campaign to recapture Houthi-held territory after weeks of escalating conflict between the Iran-backed group and Saudi Arabia. With the downside target of 166k reached, the potential for a near-term pullback rises; however, additional downside targets remain viable in the coming weeks, AHL wrote.

Cumulatively, trading volume fell to 441.8 million shares from 493.9 million in the previous session. Shares of 499 companies were traded in the ready market, with 55 stocks closing higher, 409 lower and 35 unchanged. First National Equities was the volume leader, with 50.3 million shares changing hands. Its stock fell Rs0.05 to close at Rs1.17.