KARACHI: The Pakistan Stock Exchange (PSX) witnessed a sharp decline on Monday as the KSE-100 index shed 6,600.05 points, or 3.95 per cent, to close at 160,591.33 against the previous session’s close of 167,191.38. The market sentiment declined on inconclusive peace talks between Iran and the US that triggered uncertainty in the market.
The index touched an intraday high of 163,612.12 and a low of 160,158.92. The KSE-30 index fell 2,125.25 points, or 4.2 per cent, to settle at 48,464.12.
Ali Najib, deputy head of trading at Arif Habib Ltd, said the PSX ended the session in the red, as heightened geopolitical tensions triggered a broad-based sell-off.Market sentiment remained fragile throughout the session following inconclusive US-Iran peace talks over the weekend, coupled with reports of a potential blockade of the Strait of Hormuz, raising concerns over global oil supply disruptions and macro stability.
“Ceasefire extension will be key for near-term market direction; any de-escalation in the Middle East could stabilise sentiment and ease oil price pressures and vice-versa. This may restore investor confidence, drive inflows, and support a recovery in the PSX,” he said.
Turnover in the ready market declined 15.11 per cent to 743.23 million shares, against 875.54 million shares in the previous session. Traded value dropped 26.49 per cent to Rs34.29 billion from Rs46.65 billion. Market capitalisation decreased 3.63 per cent to Rs17.8 trillion from Rs18.47 trillion.
Market breadth remained heavily negative. Of the 483 companies active in the ready market, 66 advanced, 377 declined and 40 remained unchanged.Among top gainers, Blessed Textiles Limited rose Rs98.41 to close at Rs1,082.46, while Khairpur Sugar Mills Limited added Rs47.82 to finish at Rs526.02. On the losing side, PIA Holding Company Limited (B) tumbled Rs789.54 to close at Rs17,414, and Nestle Pakistan Limited fell Rs147.77 to Rs7,355.77.
Naveed Nadeem, senior equity trader at Topline Securities Limited, said the market witnessed significant fluctuations throughout the day. The downturn was primarily driven by uncertainty surrounding the lack of progress in the US-Iran talks held in Islamabad, coupled with growing concerns over a potential blockade of the Strait of Hormuz. These developments pushed global oil prices higher, triggering broad-based panic selling across the market.
Selling pressure was particularly concentrated in index-heavy stocks, with FFC, UBL, ENGROH, LUCK and MEBL emerging as major laggards, collectively pulling the benchmark down by 2,414 points.
Nawaz Ali, an analyst at JS Global, said the benchmark KSE-100 Index remained under pressure throughout the session, with selling momentum intensifying during the final hours of trading as investor sentiment turned negative amid geopolitical concerns. Although valuations appear attractive at current levels, the prevailing uncertainty on the geopolitical front warrants caution. “Investors are therefore advised to maintain a prudent stance, closely monitor ongoing developments and avoid aggressive positioning until clarity emerges,” he said.
WorldCall Telecom led ready market turnover with 176.63 million shares, gaining 5 paisas to close at Rs1.47. Sui South Gas came second with 60.24 million shares, declining 14 paisas to Rs25.15. Other significant stocks with turnover were Bank of Punjab, F Nat Equities, K-Electric, Kohinoor Spinning, Pak Int Bulk, Nishat ChunPower, Fauji Cement and Cnergyico PK.In the futures market, 320 companies were traded, of which 11 recorded gains and 309 declined.
