Pakistan’s benchmark KSE-100 Index fell 1.49% as renewed uncertainty over the Strait of Hormuz and higher oil prices triggered broad-based selling at the stock market.
The Pakistan Stock Exchange (PSX) came under heavy selling pressure on Monday as investor sentiment deteriorated following Oman’s announcement that a scheduled meeting between Iran and Gulf countries over the Strait of Hormuz had been postponed.
The delay in diplomatic discussions revived concerns about regional tensions and the potential for prolonged disruption to shipping through the strategically important oil-transit route. The development increased risk aversion among investors and weighed heavily on equities.
At the same time, international oil prices surged following the announcement, raising fresh concerns over Pakistan’s import bill, inflation and external account position. As an oil-importing economy, higher global energy prices could increase pressure on the country’s external financing requirements and domestic price levels.
The KSE-100 Index dropped 2,541 points, or 1.49%, to close at 167,970. The benchmark touched an intraday low of 3,070 points, highlighting the intensity of the selling pressure during the session.
The decline was broad-based, with investors reducing exposure to equities amid heightened geopolitical uncertainty and concerns over the economic impact of elevated crude prices.
Among the major negative contributors, UBL, FFC, LUCK, OGDC and MCB led the decline. Collectively, the five stocks dragged the KSE-100 Index down by approximately 930 points.
Market participation remained relatively subdued compared with the previous session. Total trading volume stood at 570 million shares, while the value of shares traded reached approximately PKR24.6 billion.
CNERGY emerged as the volume leader, with around 97 million shares changing hands during the session.
The market is likely to remain sensitive to developments surrounding the Strait of Hormuz and global oil prices. Any progress towards renewed diplomatic engagement could help ease pressure, while further escalation or disruption to oil supplies could continue to weigh on investor sentiment and Pakistan’s external account.