KARACHI:
Volatility persisted at the Pakistan Stock Exchange (PSX) on Monday as investors were worried about the unending uncertainty surrounding a US-Iran diplomatic breakthrough over the strategic water lane of the Strait of Hormuz.
The index had opened the week on a positive note, climbing to 171,038.58, up 273.36 points, or 0.16%, by 9:33am. However, profit-taking soon erased the early gains, with the market turning volatile and moving lower. The index fluctuated between an intraday high of 171,126.52 and a low of 170,120.50.
The pressure came as Brent crude prices rebounded more than 3% in Asian trading after US President Donald Trump rejected an Iranian proposal aimed at resolving the conflict and reopening the Strait of Hormuz, keeping tensions in the Middle East elevated.
Consequently, the benchmark KSE-100 index lost 339.60 points or 0.20% and settled at 170,425.62.
According to Arif Habib Limited (AHL) analyst Ali Najib, PSX experienced another range-bound trading session, with the benchmark KSE-100 index sliding 340 points (-0.20% DoD) to settle at 170,426.
Investor sentiment remained fragile throughout the session as persistent geopolitical uncertainty kept market participants on the sidelines, particularly following media reports that Trump had rejected an Iranian ceasefire proposal regarding the Strait of Hormuz, while declining to comment on potential post-midterm military actions.
On the index contribution front, positive momentum from TRG Pakistan, Fauji Fertiliser, Oil & Gas Development Company, Attock Refinery, and Hub Power collectively added 264 points.
However, the gains were offset by selling pressure in United Bank, Habib Bank, Lucky Cement, Engro Holdings, and Mari Energies that dragged the index down by 321 points.
Going forward, market sentiment was expected to remain volatile, with selective buying likely if geopolitical tensions continued to ease and oil prices trended lower. However, elevated energy prices, external-sector risks and the upcoming IMF review would remain key factors influencing market direction, Najib wrote.
Overall, trading volume decreased to 421 million shares from Friday’s total of 482.7 million. The value of traded shares stood at Rs17.7 billion. In the ready market, shares of 496 companies were traded. Of these, 181 stocks jumped, 267 fell, and 48 remained unchanged. Cnergyico PK was the volume leader, with trading in 61.6 million shares, rising Rs0.14 to close at Rs13.32.
