PSX tumbles 4,864 points in volatile session as KSE-100 closes below 147,000 | The Express Tribune

The Pakistan Stock Exchange (PSX) witnessed sharp volatility on Monday, highlighting its heightened vulnerability to regional shocks amid prevailing macroeconomic uncertainty.  A sense of nervousness prevailed from the start of the trading, as investors reacted to Pakistan’s ongoing diplomatic efforts in Middle East de-escalation, which, along with rising global oil prices, fuelled uncertainty in the market. 

As a result, strong selling pressure drove the benchmark index harshly lower in early trading, pushing it down 668.16 points by 11.29am. The decline moderated later, with the index reaching 146,937.37 at 12.09pm, down 4,770.14 points (-3.14%).

During the session, the index swung between a high of 151,813.61 and a low of 144,656.97, reflecting the extent of instability. Ultimately, at the close of trading, the benchmark KSE-100 index tumbled down 4,864.54 points, or 3.21% and settled at 146,842.97.

Read: Late sell-off drags PSX lower by 1,200 points

Analysts attributed the broad-based selling to investor caution amid regional tensions, domestic macroeconomic pressures, and the impact of rising oil prices on inflation and business costs.

KTrade Securities noted that the KSE-100 index extended its losing streak, closing at 146,842 points, down 4,864 points (-3.21% DoD), as persistent external pressures kept market sentiment fragile. The market remained under sustained selling from the outset, with no meaningful recovery attempt, reflecting a clear risk-off environment and weak investor confidence.

Activity stayed relatively subdued, with volumes at 308 million shares signalling lack of strong conviction across the board. Trading interest remained concentrated in selective low-priced names, highlighting continued preference for momentum-driven plays over broader participation.

Sector-wise, pressure was widespread, with major drag coming from commercial banks, cement, and fertiliser, collectively contributing the bulk to index decline. Additionally, oil and gas, along with technology stocks, also remained under selling pressure, reflecting cautious positioning amid global uncertainty.

Read More: PSX sheds over 1,200 points to end in negative territory

Looking ahead, market direction remains closely linked to US-Iran developments and their implications for oil prices. Any diplomatic progress, particularly involving Pakistan’s mediatory role, could ease crude prices and offer near-term relief. Until clarity emerges, the market is expected to remain cautious with a downside bias.

Strategy continues to favour banks, high dividend yield plays, and selective E&Ps, while avoiding high-beta cyclicals and speculative counters, KTrade added.

Overall trading volume increased to 529.1million shares compared with previous close of 435.5million. The value of shares stood at Rs29.6billion while K-Electric was the voume leader, trading in 56.6million shares, down Rs0.31 to close at Rs6.62.