KSE-100 sheds over 630 points in early trade

The Pakistan Stock Exchange (PSX) started the week with losses on Monday as investors remained cautious amid uncertainty over the domestic economic outlook and geopolitical developments.

The benchmark KSE-100 index came under selling pressure soon after the opening bell. It fell to 166,169.41 points by 9:34am, losing 239.84 points, or 0.14 per cent.

The decline deepened during the morning session. By 12:29pm, the index had dropped to 165,776.85 points, down 632.40 points, or 0.38 per cent, from the previous close of 166,409.25 points.

During the session, the benchmark touched an intraday high of 166,581.95 points and a low of 165,601.22 points. Trading volume reached 101.08 million shares, while the total value of traded shares stood at Rs6.31 billion.

The subdued performance came despite a decline in international oil prices and signs of progress in diplomatic efforts to ease tensions in the Middle East. Talks involving Iranian and Qatari officials continued for a third consecutive day, raising hopes of an agreement and reducing immediate fears of further disruption to regional energy supplies.

However, improved international sentiment failed to encourage fresh buying at the local exchange. Investors continued to avoid taking major positions as uncertainty over global developments and domestic economic conditions persisted.

The latest losses followed a weak performance on Friday, when the KSE-100 index shed 784.19 points, or 0.47 per cent, to close at 166,409.25 points. The decline ended a four-session recovery as investors booked profits and assessed risks linked to rising oil prices and tensions around the Strait of Hormuz.

The market also faced considerable pressure throughout October. The benchmark index lost around 3,560 points, or 2.1 per cent, during the month. Geopolitical uncertainty, foreign portfolio outflows, profit-taking in heavyweight stocks and cautious investor sentiment contributed to the decline.

Although the market recovered more than 4,800 points during the final week of October and briefly crossed the 167,000-point mark, it failed to maintain the upward momentum.

Developments in the Middle East remain a major concern for investors because Pakistan relies heavily on imported energy. Any disruption to regional oil supplies or a sustained increase in crude prices could raise the country’s import bill, fuel inflation and put pressure on the external account.

Domestic monetary policy has also added to investor concerns. The State Bank of Pakistan raised its policy rate by 50 basis points to 12 per cent on October 26, citing higher energy prices and geopolitical uncertainty as risks to the inflation outlook.

Investors are now closely watching diplomatic developments, international oil prices, corporate earnings and domestic economic indicators for signs that could determine the market’s direction in the coming sessions.