Decline comes in wake of renewed regional instability after US launched airstrikes on Iranian nuclear facilities
The Pakistan Stock Exchange (PSX) began the week in the red, with the benchmark KSE-100 Index shedding 1,991.52 points, or 1.66 per cent, at the opening bell on Monday amid growing geopolitical uncertainty.
The index opened at 118,031.71, continuing last week’s downward trend, and traded within a narrow range of 307.15 points during early hours. It touched an intraday low of 117,987.14 — marking a decline of 2,036.09 points from the previous close.
Market participation remained subdued, with total volume for the KSE-100 Index recorded at just 4.76 million shares.
The decline came in the wake of renewed regional instability after the United States launched airstrikes on Iranian nuclear facilities, sharply escalating the already-tense Iran-Israel conflict. The development triggered a wave of risk aversion among investors, amid fears of a broader Middle East war.
In response, Pakistan’s Foreign Office strongly condemned the US strikes and urged all parties to exercise restraint and return to the path of dialogue. “This escalation risks plunging the region into a wider conflict, which will have grave consequences for global peace,” the FO warned in a statement.
Heavyweight sectors led the downward spiral at the start of trading, with Commercial Banks (-396.30 pts), Cement (-254.04 pts), Fertilizer (-199.06 pts), Oil & Gas Exploration Companies (-195.10 pts), and Power Generation & Distribution (-188.14 pts) pulling the index lower.
Major individual laggards in terms of index-point contribution included Engro Corporation (-139.71 pts), Fauji Fertilizer (-110.81 pts), Lucky Cement (-105.94 pts), Meezan Bank (-105.54 pts), and Mari Petroleum (-83.83 pts).
On the flipside, limited positive contributions were observed from EFU General Insurance (+3.60 pts), Adamjee Insurance (+2.73 pts), and Nestlé Pakistan (+0.74 pts), reflecting isolated buying in the insurance sector.
Top gainers in the opening session were IBFL (+3.42pc), HGFA (+1.85pc), EFUG (+1.81pc), JVDC (+0.63pc), and AICL (+0.63pc). Meanwhile, the worst performers were YOUW (-10.13pc), PKGP (-10.00pc), JDWS (-7.85pc), HUMNL (-5.58pc), and HMB (-5.15pc).
Sectorally, Insurance managed to eke out modest gains (+6.33 pts), while segments such as Tobacco, Modarabas, Close-End Mutual Funds, and Glass & Ceramics remained largely flat.
In the broader market, the All Share Index showed a contrasting trend, opening at 76,851.45 with a gain of 690.68 points or 0.91pc. However, trading activity remained muted, with total market volume falling sharply to 63.13 million shares, down from 592.95 million in the previous session. The traded value also declined significantly to Rs3.21 billion, compared to Rs21.83bn on Friday.