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KARACHI:
Fresh attacks by the US and Iran on each other sparked a wave of selling at the Pakistan Stock Exchange (PSX) on Monday, with investors dumping shares as soaring oil prices and concerns over global energy supplies weighed heavily on market sentiment.
Earlier, trading opened on a sharply negative note, when the benchmark KSE-100 index fell to the intra-day low of 179,448.52 points. It touched the intra-day high of 181,148.27 well after midday, reflecting heightened volatility throughout the session.
Although the market staged a modest rebound during the latter part of the day, it proved short-lived as renewed selling dragged the index lower before close. The KSE-100 ended trading at 179,927.05, down 2,314.73 points, or 1.27%. Major selling was observed in commercial bank, cement, fertiliser, oil and gas, and power-sector stocks.
“The KSE-100 index closed at 179,927, down 2,315 points, as broad-based selling pressure persisted throughout the session. Investor sentiment remained weak following developments over the weekend, leading to risk-off trading and pushing the benchmark lower for most of the day,” wrote KTrade Securities’ equity trader Ahmed Sheraz.
Trading activity, however, remained healthy, with 365 million shares changing hands on the KSE-100. The decline was largely driven by heavyweight stocks such as UBL, Meezan Bank, Fauji Fertiliser, Hub Power, Lucky Cement and Engro Holdings, which emerged as the biggest drags on the index. Sector-wise, commercial banks, cement, fertiliser, oil & gas, and power all closed in the negative territory, highlighting the broad-based sell-off.
The weakness came in the backdrop of several reported ceasefire violations over the weekend, which reignited geopolitical concerns and dampened investor confidence. “Going forward, market direction will remain closely tied to developments on the geopolitical front, particularly their impact on regional stability, global energy prices and the overall risk sentiment,” Sheraz added.
According to Arif Habib Limited (AHL) Deputy Head of Trading Ali Najib, the PSX commenced the week on a weak footing as escalating geopolitical tensions weighed heavily on investor sentiment. The exchange of strikes between the US and Iranian forces over the weekend heightened uncertainty, prompting investors to trim their positions and adopt a risk-off stance.
On the corporate front, Sazgar Engineering informed the PSX that it sold 2,720 four-wheelers during June 2026, surpassing street expectations of 1,600-1,700 units. Najib mentioned that UBL, Meezan Bank, FFC, Hub Power, Lucky Cement, Engro Holdings, Pakistan Petroleum, NBP, Mari Energies and MCB Bank were the major laggards, erasing 1,295 points from the index amid broad-based selling.
Market activity remained subdued, with overall trading volumes standing at 845 million shares. Going forward, Najib expected the market direction to remain largely dependent on developments in the Middle East. Any signs of de-escalation could help restore investor confidence, while further escalation may keep volatility elevated in the near term, he said.
Topline Securities, in its report, observed that the local bourse came under renewed selling pressure as escalating tensions in the Middle East dampened investor sentiment. Fresh attacks involving the US and Iran reignited concerns over a broader regional conflict, pushing international crude oil prices higher and triggering a risk-off sentiment across the market.
The benchmark KSE-100 index remained under pressure throughout the session, touching the intra-day low of 2,793 points before settling at 179,927, down 2,315 points (-1.27%).
Overall trading volumes decreased to 845.3 million shares compared with Friday’s total of 948.8 million. The value of traded shares stood at Rs35.5 billion.
In the ready market, shares of 497 companies were traded. Of these, 128 stocks closed higher, 335 fell and 34 remained unchanged.
Cnergyico Pk was the volume leader with trading in 158.5 million shares, rising Rs0.36 to close at Rs10.05. Foreign investors bought shares worth Rs40.4 million, the National Clearing Company reported.