KARACHI:
Selling pressure gripped the Pakistan Stock Exchange (PSX) on Monday, as the KSE-100 Index lost over 1,400 points during a volatile session amid escalating tensions between Pakistan and India. The benchmark index closed at 114,063.90, down by 1,405.45 points or 1.22%.
The market opened on a positive note, with the KSE-100 hitting an intra-day high of 116,658.95 during the early hours, fueled by initial optimism among investors. However, momentum quickly faded as intensifying geopolitical tensions triggered widespread selling, pushing the index to an intra-day low of 113,867.81 before the session’s end.
Topline Securities, in its post-market commentary, described the trading session as a “classic tug-of-war between bulls and bears,” noting that while the market gained as much as 1,189 points early on, it ultimately reversed to a sharp decline of 1,601 points from the peak.
The negative sentiment was largely attributed to heightened cross-border tensions following the Pahalgam attack in Indian Illegally Occupied Jammu and Kashmir (IIOJK). Relations between the two nuclear-armed neighbors have deteriorated sharply, with India accusing Pakistan of supporting “cross-border terrorism”—an allegation Islamabad has firmly rejected. In retaliation, India put the critical Indus Waters Treaty in abeyance while Pakistan responded by closing its airspace to Indian airlines, further deepening diplomatic and economic rifts.
The sensitive political situation has weighed heavily on investor confidence, extending the downward trend seen last week when the KSE-100 fell 1.57%. Analysts pointed out that the ongoing futures rollover week added to the selling pressure, while broader uncertainty surrounding Pakistan’s financial inflows also dampened sentiment.
Among individual performances, SYS, Lucky Cement (LUCK), Meezan Bank (MEBL), and Habib Bank Limited (HBL) provided some support to the index, collectively adding 489 points. However, larger drags came from Engro Corporation (ENGROH), United Bank Limited (UBL), Mari Petroleum (MARI), Engro Fertilizers (EFERT), and Pakistan State Oil (PSO), which together shaved off 907 points.
Meanwhile, in economic developments, news surfaced that Pakistan had reached an understanding with two foreign commercial banks for a $1 billion loan at an interest rate of around 7.6%. Additionally, the government announced plans to raise debt through Pakistan’s first sustainable investment asset-backed Sukuk bonds, aimed at funding three clean energy projects that require Rs52 billion for completion. These measures reflect efforts to bolster external financing, but have yet to offset broader market anxieties.
On the currency front, the Pakistani rupee posted a marginal decline against the US dollar, depreciating by 0.03% to close at 281.07 in the interbank market, down by 10 paisas from the previous session.
Market participation also cooled, with volume on the all-share index dropping to 423.94 million shares compared to 471.07 million shares previously. The value of traded shares fell to Rs26.46 billion from Rs27.31 billion.
Bank of Punjab (B.O.Punjab) led the volume charts with 23.71 million shares traded, followed by Power Cement (21.58 million shares) and WorldCall Telecom (18.31 million shares).
Overall, shares of 449 companies were traded on Monday, of which 93 closed higher, 313 declined, and 43 remained unchanged.
