KARACHI: Pakistan’s stock market remained under heavy selling pressure on Monday as rising global oil prices, inflation fears, and concerns linked to the country’s IMF commitments dampened investor confidence.
The benchmark KSE-100 Index at the Pakistan Stock Exchange closed at 161,613.51 points, registering a decline of 3,791.05 points, or 2.29 percent, compared to the previous session’s close of 165,596.07.
During intraday trading, the index touched a high of 164,939.08 before falling sharply to a low of 162,971.16, reflecting intense market volatility throughout the session.
Market analysts attributed the decline to a combination of external and domestic pressures. Rising international crude oil prices and higher treasury yields in developed economies continued to reduce investor appetite for risk assets globally, while the prolonged US-Iran conflict fueled fears of further inflationary pressures.
Analysts also noted that investor sentiment was negatively impacted by Pakistan’s ongoing fiscal commitments under its programme with the International Monetary Fund, particularly regarding revenue measures and tighter fiscal policies.
Regional markets also mirrored the weak trend. Major Asian indices mostly closed lower amid concerns over Middle East tensions and rising energy prices. Markets in Tokyo, Hong Kong, Shanghai, Sydney, Singapore, Taipei, and Wellington recorded losses, while Jakarta saw a steep decline. Seoul was among the few markets to finish in positive territory.
On the economic front, Pakistan’s weekly inflation, measured through the Sensitive Price Indicator (SPI), rose by 0.47 percent during the week ending May 14, according to data released by the Pakistan Bureau of Statistics. Year-on-year SPI inflation stood at 14.52 percent.
Investor caution also persisted after Pakistan secured a $1.3 billion disbursement under the IMF’s Extended Fund Facility (EFF) and Resilience and Sustainability Facility (RSF) following completion of the programme’s third review.
Meanwhile, Finance Minister Muhammad Aurangzeb continues discussions with an IMF delegation ahead of the upcoming FY27 federal budget.
In the previous trading session on Friday, the KSE-100 Index had already posted losses, shedding more than 900 points, while the market recorded a weekly decline of over 5,500 points overall.
