The Pakistan Stock Exchange (PSX) opened the week on a volatile note, with the benchmark KSE-100 index experiencing a sharp decline of 1,238 points on Monday. The index closed at 167,752 points, falling from the previous session’s close of 168,990 points, as investor sentiment turned cautious amid heightened geopolitical uncertainty and increased profit-taking across key sectors.
Throughout the trading day, the market remained under pressure as investors reacted to reports of escalating regional tensions involving India, which contributed to a wave of selling activity. The KSE-100 index witnessed extreme intraday volatility, dropping nearly 3,000 points at one stage to hit a low of 165,997 points before making a partial recovery by the session’s end.
According to market analysts at Topline Securities Limited, the downturn reflected a combination of external political factors, cautious investor positioning, and aggressive profit-taking after recent rallies. “The market’s performance today mirrors a short-term correction driven largely by uncertainty and defensive trading,” analysts noted, emphasizing that sectors previously leading the uptrend became the primary targets for sell-offs.
During the session, the benchmark traded within a broad range — recording an intraday high of 336 points and a low of 2,992 points — ultimately settling with a day-on-day decline of 0.73%. Major contributors to the index’s fall included Engro Corporation (ENGROH), Meezan Bank Limited (MEBL), Hub Power Company (HUBC), Bank Alfalah Limited (BAFL), and United Bank Limited (UBL), which collectively erased around 625 points from the index. On the other hand, partial recoveries were supported by Fauji Fertilizer Company (FFC), Adamjee Insurance Company Limited (AICL), and Habib Bank Limited (HBL), contributing a combined 279 points and limiting deeper losses.
Despite the overall downturn, trading volumes remained robust, indicating that investors are still active but increasingly selective in their strategies. The PSX recorded a total traded volume of 1.27 billion shares, while the traded value reached PKR 60 billion. The Bank of Punjab (BOP) emerged as the volume leader for the session, with over 131 million shares traded, showing that liquidity continues to flow into select financial stocks despite broader market turbulence.
Market observers highlighted that the recent volatility is not unexpected given the ongoing macroeconomic challenges and fragile investor confidence. They pointed out that global market trends, oil price fluctuations, and political developments in the region have all contributed to an unpredictable investment climate in Pakistan.
Analysts further suggested that while the correction reflects short-term nervousness, long-term fundamentals of certain sectors, particularly banking and energy, remain resilient. The market’s ability to rebound from its intraday low shows that institutional investors continue to seek opportunities during downturns, though overall sentiment remains cautious.
Experts believe that the PSX may continue to face pressure in the coming sessions if geopolitical uncertainty persists. However, any clarity on regional stability or positive policy signals from the government could help restore investor confidence and stabilize trading patterns in the near term.
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