The Pakistan Stock Exchange (PSX) experienced severe selling pressure on Monday, with the benchmark KSE-100 index plummeting 2,288.17 points as the collapse of domestic political dialogue overshadowed the potential macroeconomic relief of declining international oil prices. The breakdown in negotiations between the government and the Pakistan Tehreek-e-Insaf (PTI) triggered widespread market anxiety, prompting a sharp and immediate pullback in investor confidence.
Market volatility remained persistent throughout the trading session. Key benchmark metrics included:
- Closing Index: 165,867.32 points, representing a 1.36% decline from the previous close of 168,155.49.
- Intraday High: 167,918.37 points.
- Intraday Low: 165,764.21 points.
- Trading Volume: Contracted to 441.8 million shares, down from 493.9 million in the preceding session.
The aggressive sell-off was primarily driven by renewed domestic confrontation. The PTI initiated a protest march toward Islamabad after talks concerning counterterrorism policy and access to the jailed PTI founder Imran Khan dissolved without a resolution. In response, law enforcement deployed shipping containers and established roadblocks across the capital to restrict access and contain the mobilization.
This internal instability entirely negated the typical economic benefits of falling international crude prices, which could have eased pressure on Pakistan’s external account and inflation outlook. Global oil markets softened as rising Middle East exports and planned strategic releases by G7 nations boosted supply prospects. These factors temporarily offset broader geopolitical risks, including the ongoing US-Israeli war on Iran and a newly launched Yemeni government military campaign aimed at recapturing territory from the Iran-backed Houthi group.
“With the downside target of 166k reached, the potential for a near-term pullback rises; however, additional downside targets remain viable in the coming weeks.”
Trading activity in the “ready market” saw 499 companies participate, resulting in 409 equities closing lower, 55 advancing, and 35 remaining unchanged. According to Arif Habib Limited (AHL), 91 shares fell while only 8 rose across their tracked metrics.
Specific equity performances highlighted the broad market contraction:
- Major Index Drags: UBL (-1.57%), Engro Holdings (-1.77%), and HBL (-2.34%).
- Positive Contributors: Pakistan Oilfields (+1.16%), Tariq Glass Industries (+0.81%), and Highnoon Laboratories (-0.23%).
- Volume Leader: First National Equities led market activity with 50.3 million shares traded, depreciating by Rs0.05 to settle at Rs1.17.