KSE-100 starts week with loss of 1,742 points

KARACHI: The KSE-100 index shed 1,742.31 points, or 1.0 per cent, on Monday to close at 172,196.7 against the previous session’s close of 173,939.01. Investor optimism remained low amid a new wave of tensions between Iran and the US over blockade of Strait of Hormuz.

The index touched an intraday high of 174,523.76 and a low of 169,226.56 during the session. The KSE-30 index declined 489.89 points, or 0.93 per cent, to close at 52,320.08.Ali Najib, deputy head of trading at Arif Habib Ltd, said the PSX witnessed another ‘negative Monday’. The market opened in the red and remained under pressure throughout the session amid heightened geopolitical tensions, as the US and Iran exchanged aggressive statements regarding a potential blockade of the Strait of Hormuz.

“Going forward, the potential second round of US-Iran talks in Islamabad remains a key catalyst for market direction. Sentiment is likely to stay broadly supportive, but highly sensitive to headlines, with incremental developments expected to drive near-term momentum and investor positioning,” said Najib.

Turnover in the ready market fell to 1.296 billion shares, down 10.03 per cent from 1.441 billion shares in the previous session. Traded value declined 3.99 per cent to Rs65.274 billion from Rs67.992 billion. Market capitalisation stood at Rs19.06 trillion against Rs19.25 trillion, a decrease of 0.99 per cent.

Market breadth remained negative, with 138 companies advancing, 319 declining and 31 unchanged out of 488 traded.Among the top gainers, Khyber Textile Mills Limited rose Rs144.69 to close at Rs1,591.58, while Sitara Chemical Industries Limited gained Rs78.28 to close at Rs861.11. On the downside, Rafhan Maize Products Company Limited shed Rs142.50 to close at Rs9,495.34, and Allawasaya Tex. & Finishing Mills Ltd declined Rs129.00 to close at Rs1,411.

Naveed Nadeem, senior equity trader at Topline Securities Limited, said the local bourse commenced trading on a subdued note, reversing the previous session’s upward momentum.Investor sentiment remained cautious amid escalating geopolitical tensions. Concerns intensified following reports that the United States seized an Iranian-flagged cargo vessel in the Strait of Hormuz, while Iran signalled that no further round of talks is currently planned. Earlier indications of potential diplomatic engagement, including the possibility of a US delegation visiting Islamabad, were overshadowed by these developments.

Index-heavy stocks, including FFC, HBL, HUBC, LUCK and ENGROH, remained under significant selling pressure, collectively dragging the benchmark index down by 905 points.Bank of Punjab led turnover with 120.854 million shares, declining 41 paisas to close at Rs36.60, followed by Unity Foods Ltd with 92.476 million shares, advancing Rs1.04 to close at Rs11.4. K-Electric Ltd, WorldCall Telecom, Pak Elektron, Crescent Star Insurance, First National Equities, Hascol Petroleum, Cnergyico PK and Trust Brokerage were among the other companies featuring prominently in the turnover list.In the futures market, 315 contracts were traded, with 52 rising, 262 falling and one unchanged.