Index recovers from steep early losses caused by regional conflict, ends up by 125 points
KARACHI:
The Pakistan Stock Exchange (PSX) navigated a turbulent Monday session as Middle East hostilities between the United States and Iran intensified, yet strategic late-stage buying enabled the benchmark KSE-100 index to claw back from profound early declines. The index closed at 175,927.74, registering a 124.95-point gain (0.07%) after fluctuating widely between an intra-day high of 176,129.35 and a low of 173,636.46, underscoring jittery investor sentiment amid escalating geopolitical risks.
Early momentum collapsed as the index fled nearly 2,000 points, driven by global unease over mounting military exchanges. Oil price surges and risk-aversion further discouraged equity investments. However, mid-afternoon buying momentum shifted as astute investors acquired shares of select blue-chip firms at discounted valuations, mitigating losses and fostering partial recovery.
JS Global analyst Nawaz Ali highlighted the session’s duality: “Opening withdrawals mirrored severe Middle East tensions, with the index bottoming at 173,636. Revived optimism emerged as de-escalation hopes materialized, spurring strategic accumulation. We advise investors to adopt a ‘buy-on-dips’ approach, given the index’s demonstrated fortitude at depressed levels. However, sustained Middle Eastern volatility could erode gains.”
KTrade Securities’ Ahmed Sheraz noted that investor caution permeated the session, with decisive price movements tied to US-Iran escalations, including targeted strikes on infrastructure and retaliatory attacks. He emphasized the KSE-100’s resilience despite these shocks, alongside early consensus projections for corporate earnings season to inject sector-specific momentum.
“The market demonstrated commendable tenacity by reversing from historic lows to conclude positively,” remarked Ahmed Sheraz. “Geopolitical developments will remain pivotal for near-term trends.”
Arif Habib Limited’s Ali Najib contextualized the rebound, citing value-driven participation across Engro Holdings and United Bank, which collectively propelled the index upward by 367 points. Total trading volume surged to 675.9 million shares from Friday’s 621 million, translating to Rs30.3 billion in traded value.
Nearly 500 equities traded, with gains emerging from 165 stocks (492 total), though 277 closed lower. Cnergyico Pk dominated trading activity with 166 million shares exchanged, closing at Rs10.61 (+Rs0.8). Foreign institutional investors contributed Rs175 million in net purchases.
