PSX: KSE-100 sheds nearly 1% amid selling pressure

The Pakistan Stock Exchange (PSX) remained under pressure throughout Monday’s trading session, with the benchmark KSE-100 Index shedding nearly 1%.

The market opened on a positive note, and the KSE-100 initially climbed to an intra-day high of 175,353.67 but failed to sustain gains, with selling pressure intensifying in the second half of the session.

The benchmark index slipped below the 174,000 level during the final hours and continued its downward trajectory towards the session intra-day low of 173,603.75.

At close, the benchmark index settled at 173,636.07, shedding 1,692.75 points, or 0.97%.

“Market sentiment remained cautious amid renewed US-Iran geopolitical tensions and elevated international oil prices, raising concerns over inflationary pressures, the external account, and overall macroeconomic stability,” brokerage house Topline Securities said in a post-market report.

“The refinery sector came under selling pressure following reports that the federal government has decided to impose financial penalties on oil refineries that fail to execute Upgradation Agreements (UAs) with the Ministry of Energy (Petroleum Division) by October 1, 2026. The development raised concerns over potential financial implications for refinery companies,” it added.

On the negative side, UBL, OGDC, PPL, MCB, and FFC were among the major contributors to the index decline, collectively dragging the KSE-100 by approximately 811 points. Conversely, PSEL, AKBL, and AICL provided some support, collectively contributing around 117 points, Topline said.

During the previous week, the PSX came under pressure with the KSE-100 Index falling 1.3% to settle at 175,328.81 points, as renewed US-Iran military skirmishes heightened geopolitical uncertainty and a sharp rise in international oil prices added to concerns over inflation and the external account.

Internationally, Asian shares rallied on Monday as the robust US jobs ​report was seen as positive for global growth even as it narrowed the odds of a rise in interest rates, ‌while oil edged higher after the US and Iran attacked ships in the Gulf.

Tehran said it will announce a restricted zone outside the Strait of Hormuz in the coming days, after US forces hit three Iranian tankers and Iran’s Islamic Revolutionary Guard Corps launched ballistic missiles at two US Navy ships.

As a result, Brent added 0.2% to reach $96.45 a barrel, ​having climbed almost 10% last week, while U.S. crude rose 0.4% to $91.85 a barrel.

That inflationary impulse raises the stakes for a key ​reading of U.S. consumer prices this week, and is a major reason the European Central Bank is seen as certain ⁠to lift rates to 2.75% on Thursday. Futures also imply a 75% chance of another hike to 3.0% by December.

The risk of hawkish guidance ​from the ECB after the rate hike kept European stocks on edge on Monday. EUROSTOXX 50 futures and DAX futures eased 0.1%, while FTSE futures ​were flat.

On Wall Street, a U.S. holiday kept turnover light with both S&P 500 futures and Nasdaq futures a fraction lower.

In Asia, Japan’s Nikkei rebounded 2.0%, after ​losing a similar amount last week, while South Korea rallied 3.0%. MSCI’s broadest index of Asia-Pacific shares outside Japan added 0.9%.

Meanwhile, the Pakistani rupee extended its marginal gains against the US dollar on Monday. The local unit closed the day at 277.40, a gain of Re0.01 against the greenback.

Volume on the all-share index decreased to 679.19 million from 874.32 million recorded in the previous close.

The value of shares declined to Rs23.69 billion from Rs32.42 billion in the previous session.

Cnergyico PK was the volume leader with 82.46 million shares, followed by Ist.Capital Sec with 41.47 million shares, and Pak Refinery with 39.96 million shares.

Shares of 495 companies were traded on Monday, of which 154 registered an increase, 311 recorded a fall, and 30 remained unchanged.