Volatility at PSX, KSE-100 settles nearly 1,200 points lower

After a positive start, the Pakistan Stock Exchange (PSX) saw profit-taking that kept the benchmark KSE-100 Index remained under pressure, shedding nearly 1,200 points during Monday’s trading session.

After opening on a relatively firm note and briefly climbing to an intra-day high of 180,272.01 points, the index failed to sustain early gains and reversed course as profit-taking intensified.

Selling pressure accelerated during the latter half of the session, pushing the benchmark steadily lower, hitting an intra-day low of 178,331.00 points.

At close, the benchmark index settled at 178,414.79, down by 1,156.47 points or 0.64%.

“The decline was primarily attributed to broad-based profit booking following the recent market rally, as investors opted to lock in gains despite a supportive macroeconomic backdrop,” brokerage house Topline Securities said in its post-market report.

“Positive developments, including easing geopolitical tensions, investor-friendly amendments to the FY27 Finance Bill, and lower domestic fuel prices, helped cushion sentiment but were insufficient to offset selling pressure.

Overall, market sentiment remained cautious, with profit-taking dominating trading activity during the second half of the session. Going forward, investors are expected to closely monitor key macroeconomic indicators, corporate developments, and the upcoming earnings season for further direction.”

On the index contribution front, heavyweight stocks FFC, HUBC, OGDC, BAFL, and LUCK were the major drags on the benchmark index, collectively accounting for approximately 596 points of the day’s decline, Topline said.

PSX extended its bullish momentum during the outgoing shortened three-day trading week as easing geopolitical tensions in the Middle East, investor-friendly amendments to the FY27 Finance Bill and lower domestic fuel prices continued to strengthen investor confidence. According to the weekly market review, the KSE-100 Index gained 648.50 points, or 0.36%, during the week to settle at 179,571.27 points.

Internationally, Asian stocks wobbled on Monday after Iran and the United States agreed to halt renewed hostilities that had cast a shadow over an interim ​peace deal and kept oil prices supported, while the dollar stood tall near a one-year high on rate-hike bets.

A return to diplomacy in the ‌Middle East would follow several days of tit-for-tat strikes since an Iranian projectile hit a cargo vessel in the Strait of Hormuz last week, with both sides accusing each other of breaking an interim ceasefire.

Futures for the S&P 500 and Nasdaq gained 0.4% while European futures rose 0.2%. South Korea’s KOSPI fell nearly 2%, while Japan’s Nikkei slipped 1%, leaving ​MSCI’s broadest index of Asia-Pacific shares down 0.4%.

Oil rose more than 1% on Monday after attacks by the ‌US and Iran underscored the fragility of their interim peace deal, while expectations of a continued recovery in energy shipping through the Strait of Hormuz limited gains.

Iran and the U.S. agreed ​to renew talks over the strait, raising hopes of saving the ​peace deal that had been threatened by days of tit-for-tat strikes.

Brent ⁠crude futures were up 77 cents, or around 1.1%, at $72.76 a barrel by ​1324 GMT. U.S. West Texas Intermediate crude gained $1, or 1.44%, to $70.23.

Meanwhile, the Pakistani rupee posted a marginal gain, appreciating 0.01%, against the US dollar in the inter-bank market on Monday. At close, the local currency settled at 278.17, a gain of Re0.03 against the greenback.

Volume on the all-share index increased to 869.38 million from 851.30 million recorded in the previous close.

The value of shares rose to Rs43.95 billion from Rs40.38 billion in the previous session.

Sitara Petroleum was the volume leader with 104.43 million shares, followed by WorldCall Telecom with 75.53 million shares, and K-Electric Ltd with 51.57 million shares.

Shares of 494 companies were traded on Monday, of which 151 registered an increase, 320 recorded a fall, and 23 remained unchanged.