PSX opens week under pressure as KSE-100 falls amid geopolitical tensions

Pakistan Stock Exchange (PSX) began the new trading week on a cautious note on Monday, as the benchmark KSE-100 Index

KARACHI:The Pakistan Stock Exchange (PSX) began the new trading week on a cautious note on Monday, as the benchmark KSE-100 Index came under selling pressure during early trading. The index initially dropped 569.66 points, or 0.32%, reaching 177,126.84 by 9:34am.

The market, however, witnessed a sharp recovery after the initial decline as investors attempted to regain confidence. Despite the rebound, the positive momentum could not be sustained for long, with selling pressure returning later in the session and keeping the benchmark index in negative territory.

By 1:34pm, the KSE-100 Index was trading at 177,504.81, showing a decline of 191.69 points, or 0.11%, compared with the previous close of 177,696.50.

During the session, the index remained volatile and moved between an intraday high of 178,138.68 and a low of 176,991.70. This represented a trading range of more than 1,100 points, highlighting the uncertainty among investors and the fluctuating direction of the market.

Selling pressure was particularly visible across several major sectors. Automobile assemblers, cement companies, commercial banks, oil marketing companies, oil and gas exploration firms, and power generation companies remained among the sectors facing pressure during trading.

Market sentiment was also affected by growing geopolitical tensions in the region, alongside an increase in international oil prices. Investors remained cautious as developments surrounding the ongoing conflict continued to create uncertainty in global financial markets.

International oil prices were trading nearly 2% higher on Monday following an escalation between the United States and Iran. The United States attacked an Iranian island in the Strait of Hormuz, after which Tehran retaliated. The latest developments have extended the conflict into its sixth month, raising concerns about possible disruptions to oil supplies and regional trade.

The rise in oil prices added another layer of uncertainty for investors, particularly in markets that are sensitive to changes in global energy costs. Any prolonged increase in international oil prices could affect economies that rely heavily on imported energy.

The geopolitical developments also had an impact on Asian stock markets, where leading regional equities declined during the trading session. The weakness in international markets further contributed to the cautious mood among investors at the PSX.

Despite the decline in the benchmark index, trading activity remained strong. By midday, around 251.76 million shares had changed hands, while the total value of transactions stood at approximately Rs12.68 billion.

The high trading volume suggested that investors remained active despite the uncertain market environment. However, the continued fluctuations in the KSE-100 Index indicated that investors were closely monitoring both domestic market conditions and developments in international markets.

As the trading session progressed, the PSX remained sensitive to movements in global oil prices, regional geopolitical developments and investor sentiment. The market’s performance in the coming sessions is likely to depend partly on how these external pressures evolve and whether investor confidence improves.