Shafaqna Pakistan: The Pakistan Stock Exchange (PSX) began the week on a volatile note, as investor sentiment was shaken by rising geopolitical tensions in the Gulf.
The benchmark KSE-100 index fluctuated on Monday, with traders reacting to uncertainty surrounding a potential Iran–US-Israel conflict and concerns over global oil supply disruptions.
Early trading reflected heightened caution, with the index declining sharply. By 11:34am, the KSE-100 had dropped 2,371.39 points, or 1.58%, from its previous close of 150,398.71, amid fears of further escalation between the United States and Iran.
Analysts linked the initial downturn to market anxiety following a statement by US President Donald Trump on Truth Social, urging Iran to reopen the Strait of Hormuz—a key route for global oil shipments.
The conflict-driven uncertainty has already contributed to record-high oil prices and disrupted Gulf trading, further intensifying market pressure in Pakistan.
Despite the turbulent start, post-midday session saw some improvement and the index managed to recover some of its early losses by the close of trading. The KSE-100 index ended the day at 151,207.82 points, up 809.11 points, or 0.54% from the previous session, as cautious buying emerged in late trading.
The day was also marked by Habib Bank recording a higher surplus on revaluation of assets, causing a dent to the stability. Market analysts noted that volatility is likely to persist in the coming days, with investors closely monitoring developments in the Middle East and their potential impact on global energy prices.
“Investors are cautious about the conflict between US and Iran that has caused the oil prices to surge to record high and Gulf trading to halt due to Strait of Hormuz closure,” AKD Securities Director Research Mohammed Awais Ashraf told The Express Tribune.
Majority of the points are lost by UBL during Mondays trading because of its higher surplus on revaluation of assets which is at risk after recent hike in secondary market yields.
Post midday, investors sentiment turned positive on hopes of ceasefire between US and Iran after Pakistan shared the draft with two countries. However, UBL’s negative performance driven by concerns over potential pressure on its book value in the event of a rate hike has partially offset the positive impact, Ashraf added.
KTrade Securities wrote in its market wrap that the KSE-100 index closed at 151,207 points, up 809 points (+0.54% DoD), recovering from early weakness to end in positive. Initial sentiment remained cautious amid geopolitical uncertainty and oil hovering near $110 per barrel, alongside mixed Asian market cues.
Intra-day direction turned positive after reports that Pakistan is mediating between the US and Iran, with a proposed framework shared with both sides. This development eased immediate tensions, supporting a recovery into the close, while oil prices also softened slightly towards the $107–108 per barrel range.
Sector-wise, oil & gas, cement, select banks, power, and fertilisers led gains, with LUCK, HUBC, OGDC, MCB, FFC, and MARI contributing positively.
Market activity remained steady, with volumes at 270 million shares, led by Cynergy Pk recording 57 million shares Near-term outlook hinges on geopolitical developments over the next 24–48 hours, particularly US-Iran dynamics and oil price movement, KTrade added.
Source: Express Tribune
