The Pakistan Stock Exchange (PSX) experienced a subdued trading session on Monday, with the benchmark KSE-100 index losing over 1,150 points as investors refrained from building fresh positions due to persistent geopolitical uncertainty and mixed global cues. The index closed at 178,414.80, down 1,156.47 points or 0.64%.
Intraday Volatility and Sectoral Performance
The market opened on a positive note, briefly climbing above the 180,000 mark to touch an intra-day high of 180,272. However, selling pressure intensified in the latter half of the session, dragging the index to an intra-day low of 178,331 before a slight recovery at the close. Early buying interest was observed in cement, commercial banks, oil and gas exploration, oil marketing companies, power generation, and refinery stocks, but extensive profit-taking and cautious positioning outweighed these gains.
According to JS Global analyst Mubashir Anis Naviwala, "Selling pressure returned to the PSX amid cautious investor sentiment, where the KSE-100 index closed at 178,415, down 1,156 points." The market traded in the red for most of the session, with selling intensifying in the final hour.
Key Movers and Volumes
Only 28 stocks advanced while 72 declined. Major contributors to the index gains included Interloop (+8.83%), Engro Holdings (+0.80%), and Kohat Cement (+3.75%). Conversely, Fauji Fertiliser (-1.10%), Hub Power (-1.71%), and Oil & Gas Development Company (-1.40%) were the biggest drags. Total volumes stood at 869 million shares, up from 851.3 million in the previous session, with a traded value of Rs44 billion. Shares of 494 companies were traded, of which 151 advanced, 320 declined, and 23 remained unchanged. Sitara Petroleum was the volume leader with 104.4 million shares traded, closing at Rs19.49, down Rs0.92.
Geopolitical and Economic Factors
Investor sentiment was influenced by the fragile US-Iran ceasefire, rising oil prices, and choppy Asian markets where optimism over AI-driven growth was offset by cost pressures. Additionally, Pakistan announced ground operations and air strikes along its border with Afghanistan on Sunday and Monday, killing 29 militants amid heightened cross-border tensions. Petroleum Minister Ali Pervaiz Malik revealed that Pakistan is considering purchasing cheaper Iranian oil and gas. The government has also drafted a five-year auto policy (2026-31) featuring aggressive reductions in import duties and taxes to revive the stagnant automotive industry and provide relief to middle-class buyers.
According to Arif Habib Limited (AHL), the KSE-100 began the week on a weak note, falling 0.64% day-on-day. AHL expects support for the index at 175,000 and anticipates aggressive gains once the consolidation period ends. Foreign investors were net sellers, offloading shares worth Rs449.8 million, as reported by the National Clearing Company.
