The Pakistan Stock Exchange (PSX) experienced a volatile and bearish mid-day trading session on Monday as the benchmark KSE-100 Index reversed early gains and moved into negative territory amid renewed geopolitical uncertainty.
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The benchmark index was trading around 171,004 points, reflecting a sharp decline of approximately 2,935 points or 1.69% from the previous close of 173,939. During intraday trading, the index touched a high of 174,524 points before sliding to a low of 170,626 points as selling pressure intensified across key sectors.
Trading activity remained robust, with volume surpassing 345 million shares and turnover exceeding Rs37 billion, indicating active investor participation despite weakening sentiment.
Market analysts attributed the downturn to heightened uncertainty surrounding ongoing diplomatic developments linked to US-Iran negotiations being hosted in Islamabad, along with concerns over regional stability and energy supply risks through the Strait of Hormuz.
Earlier optimism driven by expectations of progress in diplomatic talks had fueled a strong weekly rally. However, conflicting signals regarding negotiations, combined with rising global oil prices, triggered profit-taking across major sectors including oil and gas exploration, energy, and textiles.
While banking and selected automobile stocks initially showed resilience, they were unable to sustain gains as broader market selling pressure intensified by midday.
Market participants noted that investor sentiment remains highly sensitive to developments involving international diplomatic engagement and the presence of a high-level foreign delegation in Pakistan, which has added to short-term volatility.
Despite the day’s correction, analysts emphasized that the overall market outlook remains positive on both year-to-date and annual performance metrics, supported by macroeconomic stability, improving foreign investor interest, and prior bullish momentum.
