KARACHI:
The Pakistan Stock Exchange (PSX) faced continued pressure on Monday as ongoing uncertainty surrounding a potential US-Iran diplomatic resolution and the fate of the strategic Strait of Hormuz kept investor confidence subdued, further fueled by concerns over oil supply disruptions.
The KSE-100 index opened strongly, climbing over 270 points, but failed to sustain momentum as profit-booking kicked in, leading to a volatile session characterized by frequent shifts between gains and losses. The index traded within a range of 170,120.50 to 171,126.52 before ultimately settling at 170,425.62, marking a net decline of 339.60 points or 0.20%.
Regional markets mirrored the trend as Brent crude prices surged over 3% during Asian trading hours following reports that US President Donald Trump had dismissed an Iranian proposal aimed at de-escalating tensions in the Hormuz region. The reluctance to engage in immediate negotiations heightened fears of prolonged instability in energy markets.
Ali Najib, Deputy Head of Trading at Arif Habib Limited (AHL), noted that the PSX witnessed yet another phase of range-bound movement, with the KSE-100 slipping nearly 340 points (-0.20%). He emphasized that investor caution dominated proceedings, driven largely by geopolitical uncertainty and divergent signals from global policymakers.
This cautious stance was evident across key sectors, where investor participation remained selective. Notably, TRG Pakistan, Fauji Fertiliser, Oil & Gas Development Company (OGDC), Attock Refinery, and Hub Power collectively contributed positive momentum, adding approximately 264 points to the index. Conversely, heavyweight names including United Bank Limited (UBL), Habib Bank Limited (HBL), Lucky Cement, Engro Holdings, and Mari Energies dragged performance down by around 321 points.
In a statement, KTrade Securities highlighted that the day’s trading reflected a mixed sentiment, dominated by selective buying in specific high-performing segments against a backdrop of broad-based selling pressure. Trading volumes for the KSE-100 reached 139 million shares, reflecting reduced liquidity compared to previous sessions.
Sectoral analysis revealed that technology stocks and certain refinery-based companies attracted consistent interest, whereas commercial banks and cement manufacturers remained underperformers, weighed down by both domestic concerns and external volatility.
Energy markets continued to react tightly to developments in the Middle East corridor, especially the Strait of Hormuz and the Red Sea region. Analysts warn that sustained unrest could keep oil prices elevated, indirectly affecting inflationary pressures and corporate earnings projections.
Market participants are now focusing on upcoming economic data releases, Federal Reserve policy cues, and any fresh geopolitical updates that might influence risk appetite moving forward.
Total trading volumes declined slightly to 421 million shares compared to Friday’s 483 million, with the overall value of transactions pegged at Rs17.7 billion. During intraday activity, shares of 496 listed companies changed hands; 181 closed higher while 267 ended lower, leaving 48 unchanged.
Cnergyico PK emerged as the most actively traded stock, with 61.6 million shares changing hands, settling at Rs13.32 per share after gaining Rs0.14. Foreign institutional investors continued their offloading pattern, divesting equities worth Rs99.2 million, according to figures released by the National Clearing Company.
