KARACHI: The stock market suffered a sharp selloff on Monday, with the benchmark KSE-100 Index plunging 4,687.51 points, or 3.05 per cent, to close at 149,178.66 points, down from the previous session’s close of 153,866.17 points. The session was among the most bearish in recent weeks, with decliners overwhelming gainers by a wide margin across all market segments, as investors remained concerned over geopolitical uncertainty and rising oil prices.
The index opened near its previous close, briefly touching an intraday high of 153,943.7 points, before sellers drove it to a low of 148,747.72 points. The KSE-30 Index also fell, losing 1,566.54 points, or 3.33 per cent, to close at 45,487.49 points, against 47,054.02 points in the prior session.
Ali Najib, deputy head of trading at Arif Habib Ltd, said the PSX extended its losing streak, breaching the 150k level, a key psychological support on a closing basis.During the session, investor sentiment remained under pressure amid escalating geopolitical tensions in the Middle East. Concerns intensified over potential disruptions to oil shipments through the Strait of Hormuz, a critical passage for global energy supplies. Any instability in this corridor could trigger heightened volatility in oil markets and amplify broader economic uncertainty.
On the domestic front, investor confidence remained fragile amid uncertainty about a potential adjustment to domestic fuel prices, which could have broader implications for inflation and corporate profitability.
Market participants maintained a cautious stance ahead of the upcoming review of Pakistan’s economic program with the International Monetary Fund (IMF), as its outcome could influence the country’s fiscal outlook and future policy direction.
“Going forward, the market may remain under pressure amid heightened geopolitical tensions. However, any signs of de-escalation on this front could help improve investor sentiment and provide support to the market,” said Ali Najib.
Trading volumes held relatively steady despite the sell-off. Shares traded in the ready market stood at 298.27 million, a marginal decline of 1.57 per cent from 303.016 million in the previous session. Traded value, however, rose by 37.4 per cent to Rs20.185 billion from Rs14.69 billion, suggesting heavier selling concentrated in higher-value stocks. Market capitalisation declined by 2.91 per cent to Rs16.825 trillion from Rs17.329 trillion.
Of the 474 companies active during the session, only 90 closed in positive territory, while 324 recorded losses and 60 remained unchanged, one of the weakest breadth readings in recent sessions and a clear signal of widespread risk-off sentiment.
Among the gainers, Blessed Textiles Limited rose by Rs52.23 to close at Rs574.5 per share. Bhanero Textile Mills Limited added Rs50 to end the session at Rs910 per share. On the declining side, PIA Holding Company Limited continued its sharp correction, falling by Rs596 to close at Rs16,050 per share. Unilever Pakistan Foods Limited extended its losing run, shedding Rs438.84 to close at Rs24,217.38 per share.
Naveed Nadeem, senior equity trader at Topline Securities Limited, said the market remained under pressure throughout the trading day, with the index largely trading in negative territory as investors adopted a cautious approach amid ongoing volatility in international oil prices.
Among the major index-heavy constituents, Fauji Fertilizer Company, United Bank Limited, Engro Holdings, Hub Power Company and Habib Bank Limited emerged as the key laggards, collectively dragging the benchmark index down by approximately 1,881 points during the session.
K-Electric Ltd topped the volume table with 18.424 million shares traded, falling 32 paisas to close at Rs7.27 per share. National Bank followed with 17.860 million shares, losing Rs14.85 to close at Rs228.42 per share.
Other significant turnover stocks included BO Punjab, Kohinoor Spinning, Cnergyico PK, Crescent Star Insurance, F Nat Equities, Hascol Petroleum, WorldCall Telecom and Nishat ChunPower.
In the futures market, 337 companies recorded trading activity, of which only 23 advanced, 313 declined, and one remained unchanged, mirroring the extreme bearish sentiment that gripped the ready market through the session.
