Selling at bourse, KSE-100 down 2.3% amid geopolitical volatility

Intense selling pressure was observed at the Pakistan Stock Exchange (PSX) as tensions in the Middle East escalated, with the benchmark KSE-100 Index shedding nearly 3,800 points or 2.3% on Monday.

The benchmark index opened near the intra-day high of 164,939.08 but immediately entered a decline phase.

A short period of sideways consolidation was observed around mid-day, suggesting temporary bargain hunting or reduced volatility. However, selling resumed in the final hours of trading, pushing the index to the intra-day low of 161,613.51.

At close, the KSE-100 Index settled at 161,805.02, down by 3,791.05 points or 2.29%.

A drone attack targeted the UAE’s Barakah nuclear site.

“The benchmark index traded under sustained pressure throughout a highly volatile session, as investor sentiment remained cautious amid the lack of meaningful progress in ongoing negotiations and continued uncertainty surrounding developments between the United States and Iran,” brokerage house Topline Securities said. “Elevated crude oil prices further weighed on market confidence.”

“The UAE has called it a ‘dangerous escalation,’ and the sudden return of the war premium is hammering energy-importing markets like Pakistan,” said Behtari Capital.

Heavyweight stocks, including OGDC, MEBL, UBL, PPL, and ENGROH, stayed under selling pressure, collectively contributing 1,159 points to the index’s decline, Topline said.

During the previous week, Pakistan’s stock market remained under pressure with the KSE-100 Index declining 3.2%, or 5,519.75 points, to close at 165,596.06 points as continued uncertainty surrounding geopolitical tensions in the Middle East kept investor sentiment subdued despite improving domestic macroeconomic indicators.

Internationally, Asian share markets were on the skids on Monday as fresh drone attacks in the Gulf shoved oil prices and bond yields higher, while the AI boom is set to ​be tested by earnings from Nvidia this week.

A drone strike caused a fire at a nuclear power plant in the United Arab Emirates, while Saudi Arabia reported intercepting three drones, ‌as US President Donald Trump warned that Iran must act “fast” to reach a deal.

Meanwhile, the vital Strait of Hormuz remains closed to all but a trickle of shipping as Tehran tries to formalise its control of the waterway that during normal times carries 20% of the world’s oil trade.

G7 finance ministers are scheduled to gather in Paris on Monday to discuss the Strait of Hormuz and critical raw material supplies, even as geopolitical differences threaten to test the group’s cohesion.

Minutes of the Fed’s last meeting are out on Wednesday and should show how much pressure there was on the committee for a shift to a neutral stance and away from an easing bias.

Japan’s Nikkei eased 1.1%, having fallen 2% last week from record highs. South Korean stocks fell 0.1%, as the red-hot ​market cooled just a little after demand for semiconductors drove it to all-time peaks.

MSCI’s broadest index of Asia-Pacific shares outside Japan lost 0.9%.

Meanwhile, the Pakistani rupee posted marginal gain against the US dollar in inter-bank market on Monday. At close, the local currency settled at 278.60, a gain of Re0.01 against the greenback.

Volume on the all-share index decreased to 499.79 million from 625.45 million recorded in the previous close.

The value of shares declined to Rs19.44 billion from Rs22.31 billion in the previous session.

Dost Steels Ltd was the volume leader with 40.06 million shares, followed by K-Electric Ltd with 32.51 million shares, and Cres.Star Ins. with 26.32 million shares.

Shares of 487 companies were traded on Monday, of which 66 registered an increase, 383 recorded a fall, and 38 remained unchanged.