The Pakistan Stock Exchange (PSX) started the week on a negative note on Monday, with selling pressure pushing the benchmark index lower as investors remained reluctant to take fresh positions amid continued market uncertainty.
The KSE-100 index entered negative territory shortly after the opening bell. At 9:34am, it stood at 166,169.41 points, down 239.84 points, or 0.14 per cent.
Selling pressure intensified during the morning session. By 12:29pm, the benchmark had fallen to 165,776.85 points, registering a decline of 632.40 points, or 0.38 per cent, from the previous close of 166,409.25 points.
Intraday Market Performance
During the session, the KSE-100 index touched an intraday high of 166,581.95 points and a low of 165,601.22 points, reflecting continued volatility at the local bourse.
Trading volume reached 101.08 million shares, while the total value of shares traded stood at Rs6.31 billion.
The decline continued despite some improvement in the international economic outlook, as hopes of diplomatic progress in the Middle East and lower crude oil prices offered relief to global financial markets.
Global Developments Fail to Lift Sentiment
International oil prices retreated amid renewed diplomatic efforts to end the US-Israeli war on Iran.
Iranian and Qatari officials held a third consecutive day of discussions aimed at reaching an agreement. The absence of significant military escalation over the weekend also eased immediate concerns about further disruptions to regional energy supplies.
However, the improved external environment failed to encourage sustained buying at the Pakistan Stock Exchange, where investors remained cautious about taking fresh positions.
KSE-100 Index Gains Over 1,100 Points as Buying Interest Continues
Previous Week’s Rally Loses Momentum
The latest decline followed a weak close on Friday, when the KSE-100 index shed 784.19 points, or 0.47 per cent, to settle at 166,409.25 points.
The drop ended a four-session recovery as investors opted to book profits amid concerns over international oil prices, developments in the Strait of Hormuz and uncertainty surrounding the Middle East conflict.
Despite gaining more than 4,800 points during the final week of October and briefly crossing the 167,000-point mark, the market struggled to maintain its upward momentum.
PSX Remains Under Pressure
The broader market also experienced a difficult October, with the KSE-100 index losing 3,560 points, or approximately 2.1 per cent, during the month.
Geopolitical uncertainty, foreign portfolio outflows, profit-taking in heavyweight stocks and cautious investor sentiment contributed to the decline.
Pakistan’s dependence on imported energy has made developments in the Middle East particularly important for the local stock market. Rising oil prices can increase the country’s energy import bill and add pressure to inflation and the external account.
The State Bank of Pakistan also increased its benchmark policy rate by 50 basis points to 12 per cent on October 26, citing higher energy prices and geopolitical uncertainty affecting the domestic inflation outlook.
The latest monetary policy decision has added another factor for investors assessing corporate earnings, borrowing costs and broader economic conditions.
Market participants are now closely monitoring developments in the Middle East, international crude oil prices and domestic economic indicators for clearer signals about the direction of the stock market in the coming sessions.
