Selling hits key sectors as oil prices surge nearly 3% amid Middle East escalation
KARACHI
The Pakistan Stock Exchange (PSX) surrendered more than 720 points on Monday as selling pressure kept the benchmark KSE-100 Index under pressure, with escalating geopolitical tensions, rising international oil prices and cautious investor sentiment weighing on the market.
Selling was observed in key sectors, including automobile assemblers, cement, commercial banks, oil marketing companies, oil and gas exploration companies and power generation. The index had already lost 569.66 points, or 0.32%, within minutes of trading to reach 177,126.84 by 9:34am.
Investor sentiment remained cautious as international oil prices rose nearly 3% after the United States attacked an Iranian island in the Strait of Hormuz and Tehran retaliated, extending the conflict into its sixth month.
The escalation also weighed on Asian markets, with major regional equities declining during the session.
The benchmark KSE-100 index touched an intraday high of 178,138.69 and a low of 176,944.91 and eventually fell 720.83 points, or 0.41%, to settle at 176,975.68.
According to Ahmed Sheraz of KTrade Securities, the KSE-100 index closed at 176,975 points, down 720 points (-0.41%) day-on-day, with approximately 494 million shares traded.
The session remained under pressure as selling in commercial banks, cement and technology stocks weighed on the index, with United Bank, Systems, Habib Bank and Lucky Cement among the major negative contributors.
Meanwhile, refineries, however, stood out as the key outperforming sector, with Pakistan Refinery, National Refinery and Attock Refinery posting notable gains amid expectations surrounding the signing and implementation of the refinery upgrade policy in the coming month.
This selective strength provided some support, though it was insufficient to offset broader weakness across heavyweight sectors.
