KARACHI: The Pakistan Stock Exchange (PSX) came under heavy selling pressure on Monday, with the benchmark KSE-100 Index losing nearly 2,000 points amid growing political uncertainty.
At the close of trading, the benchmark index stood at 165,124.41 points, registering a decline of 1,964.186 points, or 1.19%.
Market analysts linked the downturn to rising political uncertainty following the federal government’s decision to impose emergency rule in Khyber Pakhtunkhwa.
Selling pressure was widespread across major sectors, including automobile assemblers, cement, commercial banks, oil and gas exploration companies, oil marketing companies and power generation.
Several heavyweight stocks, including HUBCO, MARI, OGDC, POL, PSO, MCB, MEBL, NBP and UBL, ended in negative territory, contributing to the market’s decline.
The bearish trend followed a difficult week for the stock market, as tensions between the United States and Iran, intensifying military clashes between Saudi forces and Yemen’s Houthi fighters, and broader regional security concerns dampened investor confidence.
During the previous week, the KSE-100 Index dropped 1,066.20 points, or 0.6%, on a week-on-week basis to close at 167,089.28 points.
Asian markets remain cautious
International equity markets also began the week on a cautious note as investors assessed upcoming corporate earnings and concerns over elevated valuations in the technology sector.
Asian markets faced additional uncertainty amid fluctuating oil prices following attacks on shipping and airports in the Gulf region.
Meanwhile, confusion surrounded US President Donald Trump’s announcement of an energy ceasefire between Russia and Ukraine, which neither side had confirmed.
Trump’s proposal for Russia to increase diesel exports also faced criticism from Republican and Democratic senators, who questioned its legality.
South Korean stocks fell 1.1% on Monday, while MSCI’s broadest index of Asia-Pacific shares outside Japan remained largely unchanged.
