The KSE‑100 index fell to an intraday low of 165,512.12 as the imposition of governor’s rule in Khyber Pakhtunkhwa, coupled with Houthi attacks on Saudi airports and threats to energy supplies via the Strait of Hormuz, dampened market sentiment.
On Monday, the Pakistan Stock Exchange (PSX) faced heavy selling pressure as domestic political uncertainty following the governor’s rule in Khyber Pakhtunkhwa intersected with escalating regional tensions. Houthi assaults on Saudi civilian and energy infrastructure, together with the ongoing risk to oil shipments through the Strait of Hormuz, eroded investor confidence and propelled the benchmark KSE‑100 index down by more than 1,900 points during intraday trading.
Early in the session the KSE‑100 opened bearish, shedding more than 900 points within the first minutes. The index continued to slide, ultimately closing at 165,124.41, a decline of 1,964.86 points (1.18 %) from the previous close of 167,089.27.
The sell‑off was broad‑based, affecting major sectors such as automobile assemblers, cement manufacturers, commercial banks, oil and gas explorers, oil marketing firms, and power generators.
The decline followed a volatile week for Pakistan’s equity market. Persistent attacks on key shipping lanes and the expansion of Houthi strikes to Saudi civilian and energy sites further weakened investor sentiment, with the KSE‑100 losing 1,066 points (0.6 %) to settle at 167,089 points during the prior week.
Trading activity also waned, with average daily volume slipping 16.5 % week‑on‑week to 541 million shares.
Looking forward, AKD Securities anticipates that improving economic indicators and easing inflationary pressures could reduce the need for further monetary tightening, thereby supporting the equity market.
The brokerage added that any positive resolution in the Middle‑East conflict could help moderate international oil prices, potentially opening the door for monetary easing and aiding a recovery in equities.
Globally, stock markets started the week with mixed performance. Asian equities slipped—South Korean stocks fell 3.1 % and Taiwanese shares were down 0.2 %—while MSCI’s Asia‑Pacific ex‑Japan index retreated 0.4 % and Chinese blue‑chip shares edged 0.1 % lower.
In the United States, S&P 500 futures rose 0.3 % and Nasdaq futures gained 0.4 %. European futures also posted modest gains, with EUROSTOXX 50 up 0.5 %, DAX gaining 0.6 % and FTSE advancing 0.4 %.
Brent crude futures fell 11 cents to $104.61 a barrel, while U.S. West Texas Intermediate crude slipped 49 cents to $91.36 a barrel, both down over 1 % earlier in the session. Oil prices were influenced by uncertainty surrounding potential increases in Russian energy exports and the impact of the Gulf region’s continued strikes on shipping and airports.
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