KARACHI: As geopolitical tensions over the Iran-Israel conflict escalated, the Pakistan Stock Exchange (PSX) saw panic selling and started the week on a bad note. The benchmark KSE-100 index fell 3,856 points.
The KSE-100 plunged by 3,855.77 points, or 3.21 per cent, to 116,167.47 points, down from 120,023.24 points recorded in the last session. The highest index of the day remained at 118,798.52 points, while the lowest level was recorded at 115,887.49 points.
Analyst Ahsan Mehanti at Arif Habib Corp said that rising tensions in the Middle East triggered a global equity selloff and stock slump.He said high inflation and thin exports outlook on supply disruptions in response to expected retaliation to the US attack on Iran played a catalytic role in selling activity at the PSX.
The KSE-30 index decreased by 1,125.88 points or 3.08 per cent to 35,407.35 points from 36,533.23 points. Traded shares rose by 174 million shares to 595.01 million shares from 421.643 million shares. The trading value increased to Rs23.488 billion from Rs15.488 billion. Market capital narrowed to Rs14.063 trillion against Rs14.536 trillion. Of the 468 companies active in the session, 56 closed in green, 386 in red and 26 remained unchanged.
Naveed Nadeem, an analyst at Topline Securities, said the PSX experienced a subdued trading session in line with the cautious mood seen across global markets. Investor sentiment was dampened by rising geopolitical tensions, especially the intensifying conflict between Iran and Israel, which led to heightened uncertainty and widespread risk aversion, he said. This nervousness triggered broad-based panic selling.
Major index-heavy stocks including ENGROH, PPL, LUCK, OGDC and MARI were among the top laggards, together dragging the index down by 1,054 points.The highest increase was recorded in Philip Morris (Pakistan) Ltd, which rose by Rs35.38 to Rs1,136.01 per share, followed by Faisal Spinning Mills Limited, which increased by Rs21.26 to Rs335.17 per share. A significant decline was noted in PIA Holding Company Limited B, which fell by Rs1,115.38 to Rs10,038.45 per share, Unilever Pakistan Foods Limited followed it, which closed lower by Rs245.72 to Rs22,900 per share.
Analyst Mubashir Anis Naviwala at JS Global said PSX suffered heavy losses amid sharp sell-off amid panic selling and index failed to recover throughout the session. The sharp decline reflects heightened fear driven by uncertainty and external pressures. “We advise investors to remain cautious, focusing on risk management and selective accumulation,” he advised.
WorldCall Telecom remained the volume leader with 53.303 million shares, which closed lower by 10 paisas to Rs1.35 per share. Sui South Gas, with 35.996 million shares, followed it, which closed lower by Rs4.20 to Rs38.80 per share. Other significant turnover stocks included Pervez Ahmed Co, K-Electric Ltd., Kohinoor Spining, Fauji Cement, Cnergyico PK, Maple Leaf, Dewan Cement, and BO Punjab. In the futures market, 318 companies recorded trading, 9 of which increased and 309 decreased.
Contrary to this, most Gulf stock markets closed higher on Monday, buoyed by rising oil prices as investors monitored the fallout from US airstrikes on Iran’s nuclear sites, according to Reuters. Oil briefly hit a five-month high before paring gains, with traders bracing for potential Iranian retaliation that could disrupt global crude flows via the Strait of Hormuz.
Saudi Arabia’s benchmark index rose 1.3 per cent, driven by gains in Al Rajhi Bank (+1.6 per cent) and Saudi National Bank (+1.5 per cent). Dubai’s index added 1.1 per cent, supported by Emaar Properties (+2.8 per cent) and Dubai Islamic Bank (+1.8 per cent). Abu Dhabi and Qatar’s indices edged up 0.5 per cent each. Meanwhile, Gulf states remained on alert, urging restraint. No signs of nuclear contamination were reported by Saudi or UAE authorities.Outside the Gulf, Egypt’s main index gained 1.2 per cent, led by a 7.2 per cent surge in EFG Holding.