Pakistan Stock Exchange Slips 1,693 Points Amid Geopolitical Tensions

The Pakistan Stock Exchange (PSX) fell sharply on Monday as the benchmark KSE-100 index declined by 1,692.74 points (0.97%), pressured by rising crude oil prices and heightened tensions in the Strait of Hormuz, dampening investor confidence.

The index opened the week weakly, slipping 429.59 points (0.25%) to 175,353.67 by 9:39 am. After reaching a peak of 175,353.67, selling intensified and drove the index to an intraday low of 173,603.75. The sectors most affected included oil marketing companies, automobile manufacturers, cement producers, commercial banks, and refineries.

Globally, oil prices climbed by more than $1 per barrel after tit‑for‑tat U.S. and Iran strikes targeting vessels near Hormuz raised concerns of a prolonged disruption to Middle Eastern supplies. Iran’s proposal to limit the Gulf zone and the emergence of a new shipping corridor further amplified supply worries, prompting anxiety over Pakistan’s import costs, external balance, and the outlook for oil‑sensitive industries.

Arif Habib Limited reported that the KSE-100 fell 0.97% to 173.6 k on Monday, moving toward July’s lows. Of the 175,000 shares traded, only 12 advanced while 87 declined; Pakistan Services (+7.55%), Askari Bank (+1.54%), and Adamjee Insurance (+3.23%) led the gains, whereas UBL (‑2.69%), OGDC (‑2.48%) and Pakistan Petroleum (‑1.78%) weighed on the index.

Pakistan Services rose after reports of an out‑of‑court settlement concerning its hotel assets and voting rights. Thatta Cement and Fauji Foundation, parties to the dispute, signed a memorandum of understanding to effect the settlement, according to Nukta. Nevertheless, a bourse filing indicated that Pakistan Services was unaware of the report’s details and that the share‑holding cases remain sub judice.

Iran announced that an agreement with Oman to oversee Hormuz shipping could be finalized within days, even as oil prices kept climbing. Arif Habib Limited expects the KSE‑100 to test the July low of 170 k in the near term.

KTrade Securities observed that the session stayed pressured by broad‑based selling. Selling pressure was visible across banks, oil and gas, cement, fertiliser and refineries. Notable decliners included UBL, OGDC, Pakistan Petroleum, MCB, Fauji Fertiliser, Lucky Cement, Bank Al Habib and Attock Refinery, underscoring extensive profit‑taking and risk‑averse sentiment.

The firm warned that rising oil prices pose a key risk to the market, potentially affecting Pakistan’s inflation, external account and overall macroeconomic stability.

Investor sentiment is expected to stay cautious and driven by headlines; any easing of crude prices could offer relief, whereas further escalation may sustain pressure on the market.

Trading volume fell to 679.2 million shares, down from 874.3 million on Friday, with a total turnover of Rs23.7 billion.

Across the ready market, 495 companies saw trading activity; 154 stocks rose, 311 fell, and 30 remained flat.

Cnergyico Pakistan recorded the highest volume, handling 82.5 million shares and closing at Rs13.02, down Rs0.90. Foreign investors sold shares valued at Rs122.5 million, according to the National Clearing Company.

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