KARACHI: The Pakistan Stock Exchange (PSX) faced selling pressure on Monday as the ongoing US-Iran war entered its third week, while investors remained cautious ahead of the Eid holidays.
Market Performance
The KSE-100 Index swung between a high of 153,943.69 points (up 77.53, 0.05%) and a low of 149,317.45 points (down 4,548.71, 2.96%) from the previous close of 153,866.16 points.
Huzaifa Riaz, Director at Mayari Securities, commented, “Market sentiment remained negative as the US-Iran war entered its third week with no visible signs of de-escalation. Going forward, the market is likely to take cues from geopolitical developments, and any indications of an off-ramp could boost positivity.”
PSX Ends Mixed Amid Oil Price Spike and IMF Talks
Oil Prices and Global Impact
Brent crude touched $106.50 per barrel before trimming gains, while WTI crude hovered around $99, as global diplomats sought safe passage for tankers through the Strait of Hormuz.
US President Donald Trump warned that attacks could extend to energy infrastructure if Iran disrupted shipping. Iran’s Fars News Agency later reported no damage to oil facilities.
Asian markets were mixed amid energy concerns: Tokyo, Shanghai, Sydney, Seoul, Wellington, Manila, and Jakarta fell, while Hong Kong, Singapore, and Taipei edged higher.
Analyst Insights
- AKD Research warned that the PSX will remain sensitive to Middle East developments. Further escalation could sustain selling pressure, while de-escalation could trigger recovery. They noted the forward price-to-earnings ratio at 6.6 times, viewing it as attractive.
- Arif Habib Limited Research reported the KSE-100’s P/E ratio at 7.7 times with a dividend yield of 6.6%.
The benchmark lost 3,630 points (2.3%) over the past week, closing at 153,866 points on Friday. On the previous session, it had fallen 555.27 points (0.36%) from 154,421.43.
Outlook: The PSX is expected to remain geopolitically driven, with investors monitoring the US-Iran conflict closely for signs of stabilization that could lift market sentiment.
