PSX falls as US-Iran tensions weigh on market

PSX falls as US-Iran tensions weigh on market

The Pakistan Stock Exchange (PSX) closed lower on Monday as renewed uncertainty over US-Iran diplomacy and concerns surrounding the Strait of Hormuz weighed on investor sentiment.

The benchmark KSE-100 index initially gained more than 270 points but failed to sustain the momentum as investors opted to book profits. The index remained volatile throughout the session, moving between an intraday high of 171,126.52 and a low of 170,120.50.

The KSE-100 ultimately shed 339.60 points, or 0.20%, to close at 170,425.62.

Market pressure intensified after US President Donald Trump rejected an Iranian proposal linked to resolving the ongoing conflict and reopening the Strait of Hormuz. The development pushed Brent crude prices more than 3% higher in Asian trading, raising concerns over global oil supplies and adding to uncertainty in oil-importing economies such as Pakistan.

Ali Najib, Deputy Head of Trading at Arif Habib Limited (AHL), said the market remained range-bound as geopolitical concerns kept investors cautious. He noted that reports about the US rejection of Iran’s proposal, along with uncertainty over possible military action, further weakened market confidence.

Several stocks provided support to the index. TRG Pakistan, Fauji Fertiliser, Oil & Gas Development Company, Attock Refinery and Hub Power collectively contributed around 264 points. However, selling in United Bank Limited, Habib Bank Limited, Lucky Cement, Engro Holdings and Mari Energies erased those gains, dragging the index down by about 321 points.

Najib said market volatility could continue in the coming sessions, with investor interest likely to depend on developments in geopolitical tensions and oil prices. He identified elevated energy costs, external-sector risks and the upcoming IMF review as key factors that could influence market direction.

KTrade Securities described Monday’s trading as cautious, with selective buying alongside broad-based selling. Trading activity remained moderate, with 139 million shares changing hands. Technology and selected refinery stocks performed relatively well, while commercial banks and cement companies faced selling pressure.