The Pakistan Stock Exchange (PSX) came under selling pressure on Monday as domestic political uncertainty and escalating regional tensions weakened investor confidence. The benchmark KSE-100 Index dropped more than 1,500 points during intraday trading, reaching a low of 165,512.12 points.
According to data available on the PSX website, the index opened with a decline of more than 900 points and was trading at 165,653.81 points at 2:12 pm, down 1,435.46 points, or 0.86%, from the previous close of 167,089.27 points. The imposition of governor’s rule in Khyber Pakhtunkhwa (KP), Houthi attacks on Saudi airports and concerns over energy supplies through the Strait of Hormuz weighed on market sentiment.
Selling was observed across major sectors, including automobile assemblers, cement, commercial banks, oil and gas exploration companies, oil marketing companies and power generation. The decline followed a volatile week in which the KSE-100 Index lost 1,066 points, or 0.6%, while average daily trading volume fell 16.5% week-on-week to 541 million shares.
AKD Securities said improving economic indicators and easing inflationary pressures could support the equity market by reducing the likelihood of further monetary tightening. The brokerage added that positive developments in the Middle East could ease international oil prices, potentially creating room for monetary easing and supporting a recovery in stocks.
International markets also remained cautious amid geopolitical tensions and uncertainty over energy supplies. Brent crude was trading at $104.61 per barrel, while US West Texas Intermediate (WTI) stood at $91.36 per barrel during early trading on Monday.