Renewed geopolitical tensions trigger broad-based selling, wiping more than 2,300 points off Pakistan’s benchmark stock index
KARACHI: The Pakistan Stock Exchange (PSX) came under intense selling pressure on Monday as escalating geopolitical tensions in the Middle East unsettled investors, sending the benchmark KSE-100 Index down by more than 2,300 points.
The KSE-100 Index closed at 179,927.04, falling 2,314.73 points, or 1.27 per cent, from the previous close of 182,241.77.
The market remained highly volatile throughout the trading session. The benchmark index touched an intraday high of 181,148.26 before plunging to a low of 179,448.52, as investors reacted to mounting regional uncertainty.
According to market analysts, investor sentiment deteriorated after renewed hostilities involving the United States and Iran fuelled concerns over a broader conflict in the Middle East. The heightened geopolitical risk pushed international crude oil prices higher and prompted investors to reduce exposure to equities, resulting in widespread selling across major sectors.
The decline was further exacerbated by broad-based profit-taking, with investors locking in gains following the stock market’s recent rally despite Pakistan’s improving macroeconomic indicators.
At one stage during the session, the KSE-100 Index was down by as much as 2,793 points before recovering part of the losses towards the close.
Heavyweight stocks United Bank Limited (UBL), Meezan Bank Limited (MEBL), Fauji Fertilizer Company (FFC), Hub Power Company (HUBC) and Lucky Cement (LUCK) were the biggest drags on the benchmark, collectively shaving around 845 points off the index.
Trading activity also weakened during the session. Total traded volume reached 845 million shares, while the value of traded shares stood at Rs35.5 billion.
Among individual stocks, Cnergyico PK Limited (CNERGY) topped the volume chart, with approximately 158 million shares changing hands.
Analysts expect market participants to remain cautious in the near term as they closely monitor developments in the Middle East, movements in global oil prices and their potential implications for investor sentiment and financial markets.