PSX falls nearly 500 points in early trade

The Pakistan Stock Exchange (PSX) came under selling pressure on Monday, with the benchmark KSE-100 Index losing nearly 500 points during the opening phase of trading.

At around 10:15am, the index stood at 170,299.24 points, showing a decline of 465.98 points, or 0.27%. Selling was seen across several major sectors, including automobile assemblers, cement, commercial banks, fertiliser, oil and gas exploration companies and oil marketing companies.

Several heavyweight stocks also traded lower. HUBCO, MARI Petroleum, Oil and Gas Development Company (OGDC), Pakistan Petroleum Limited (PPL), Pakistan State Oil (PSO) and Habib Bank Limited (HBL) were among the prominent stocks in the red.

Market sentiment was also influenced by developments surrounding Pakistan International Airlines (PIA). Adviser to the Finance Minister Khurram Schehzad said Pakistan had discussed possible financing from the US Export-Import Bank for Boeing aircraft intended for the privatised airline.

However, he clarified that no government loan or sovereign guarantee had been announced for PIA. The development comes as investors continue to monitor the airline’s privatisation process and its future financing arrangements.

The PSX ended the previous week on a cautious note. The KSE-100 Index declined 119.37 points, or 0.1%, to close at 170,765.22 points. Political and geopolitical uncertainty continued to limit investor appetite for risk.

Global markets also faced pressure on Monday. Asian shares mostly moved lower as oil prices rose again amid uncertainty over a possible ceasefire between the United States and Iran. Higher energy prices have raised concerns about renewed inflationary pressure.

US President Donald Trump rejected an Iranian proposal concerning the reopening of the Strait of Hormuz over the weekend. He said further discussions with Iran were expected during the week, while Tehran has maintained its position on key proposals.

Rising diesel prices have added to concerns over inflation. Limited refining capacity has pushed diesel prices sharply above crude oil prices, increasing the possibility of higher costs being passed through to consumers and businesses.

Global investors are also watching central bank decisions closely. The Reserve Bank of Australia is expected to consider its interest-rate policy on Tuesday, while markets are pricing in expectations of further tightening by the US Federal Reserve.