KARACHI: Pakistan Stock Exchange (PSX) witnessed a sharp sell-off on Monday, as escalating US-Iran conflict, attacks on shipping through the Strait of Hormuz and inter-national oil prices remaining above US$100 per barrel weighed heavily on investor sentiment, raising concerns over fuel inflation, the import bill and the monetary policy outlook.
The benchmark KSE-100 Index closed at 167,970.66 points against Friday’s close of 170,511.86, losing 2,541.20 points during the session. The benchmark opened the day under pressure, touched an intraday high of 170,437.73 points and subsequently fell to a low of 167,441.64 points as geopolitical concerns dominated trading activity.
The widespread decline was also reflected in the performance of all Business Recorder sectoral indices. The BRIndex100 dropped 317.55 points, or 1.69 percent, to close at 18,447.25 points on total volume of 429.512 million shares, while the BRIndex30 shed 1,214.58 points, or 1.78 percent, to settle at 67,135.45 points with turnover of 260.443 million shares.
According to Ali Njaib, deputy head of Trading at Arif Habib Limited, Investor sentiment remained cautious amid escalating regional tensions and elevated international oil prices, which raised fears of higher domestic fuel costs, renewed inflationary pressures and an expanding import bill, while also creating uncertainty over the future direction of monetary policy.
Market participants were additionally focused on the State Bank of Pakistan (SBP) Monetary Policy Committee (MPC) meeting and expectations of a status quo decision, with the benchmark interest rate expected to remain at 11.50 percent for the next couple of months.
Major index constituents remained under selling pressure and significantly contributed to the benchmark’s decline. UBL, FFC, LUCK, OGDC, MCB, ENGROH, HBL, BAHL, FATIMA and SYS collectively dragged the KSE-100 Index down by approximately 1,331 points.
Trading activity contracted in the ready market despite the sharp decline in prices. Total ready-market volume fell to 570.472 million shares from 687.467 million shares on Friday, a decrease of 116.995 million shares, or 17.02 percent. Total traded value declined to Rs24.672 billion from Rs33.705 billion, representing a decrease of Rs9.033 billion, or 26.80 percent.
Aggregate market capitalization shrank by Rs287.238 billion to Rs18.728 trillion from Rs19.016 trillion in the previous session, reflecting the broad-based decline in share prices.
Market breadth was sharply negative, with only 83 companies advancing while 373 declined and 36 remained unchanged out of 492 active issues in the ready market.
Cnergyico PK remained the most actively traded stock in the ready market, with 97.168 million shares changing hands. The stock closed at Rs12.81 against Rs12.93 on Friday.
Waves Home (R) followed with 72.902 million shares. The stock settled the day at Rs0.06 against Rs0.17 previously.
Media Times Ltd recorded 52.841 million shares, opening at Rs6.75 and moving between Rs6.66 and Rs7.77 before closing higher at Rs7.64 against Rs6.92.
In ready-market price movements, Pakistan Services Limited posted the largest absolute gain, advancing Rs108.75 to close at Rs1,196.22. Nestle Pakistan Limited followed with a gain of Rs 84.53, settling at Rs7,508.75.
On the losing side, Unilever Pakistan Foods Limited recorded the steepest decline, falling Rs688.55 to finish at Rs24,109.22. Buxly Paints Limited followed, shedding Rs83.46 to close at Rs751.13.
The BR Automobile Assembler Index declined 362.06 points, or 1.56 percent, to 22,830.41 points on turnover of 1.480 million shares. The BR Cement Index was among the weaker performers, falling 323.12 points, or 2.75 percent, to 11,416.76 points on a total volume of 19.017 million shares.
The BR Commercial Banks Index dropped 999.54 points, or 1.69 percent, to 58,122.74 points on turnover of 40.661 million shares. The BR Power Generation and Distribution Index slipped 333.18 points, or 1.28 percent, to 25,650.41 points on volume of 20.974 million shares.
The BR Oil and Gas Index declined 157.21 points, or 1.06 percent, to 14,629.36 points with turnover of 31.797 million shares, while the BR Tech. & Comm. Index decreased by 65.88 points, or 1.94 percent, to 3,333.09 points on turnover of 91.920 million shares.
Analysts said market activity is likely to remain volatile in the near term, with selective profit-taking and stock-specific moves expected amid the ongoing result season. Ali Najib said geopolitical developments, elevated oil prices and the SBP monetary policy decision would remain key drivers of market direction.
Copyright Business Recorder, 2026
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