Lead

The Pakistan Stock Exchange (PSX) opened the trading week in negative territory, with the benchmark KSE-100 index suffering a sharp intraday decline. The drop came as renewed US-Iran hostilities rattled investor confidence and drove international oil prices upward.

Coverage Comparison

Reports from Dawn, covering the Monday session, consistently noted the market's weak start. However, they differed on the exact magnitude of the initial decline. One account described the index as falling by approximately 2,000 points during intraday trading, while another cited a 2,300-point drop, and a third referenced a loss of 1,600 points at one stage. The KSE-100 index lost 2,215.27 points by 10:19am, standing at 180,026.5 points against the previous close of 182,241.77 points, according to one report. Another noted that the index touched an intraday low of 179,448.52 points soon after opening, down 2,793.25 points from the previous close.

The reports also documented a partial recovery later in the session. One noted that the index had reversed some of its losses by around 1pm, trading down 1,654.19 points. Another said the index reached an intraday high of 181,148.26 points by 2:30pm before succumbing to renewed selling pressure.

Differences also emerged in reports of oil price movements. One account said oil prices jumped more than four per cent on Monday due to the fighting, while another cited a rise of more than three per cent.

Key Claims

  • The KSE-100 index closed at 179,927.04 points, down 2,314.73 points (1.27 per cent) from the previous close, according to one report.
  • Total traded volume eased to 845 million shares, with traded value at Rs35.5 billion. CNERGY topped the volume chart with 158 million shares changing hands, as noted by Topline Securities.
  • Mettis Global and Topline Securities said market sentiment remained under pressure after the US and Iran exchanged fresh strikes in an escalating contest over control of the Strait of Hormuz.
  • Topline Securities said the US-Iran exchanges "reignited concerns over a broader regional conflict, pushing international crude oil prices higher and triggering a risk-off sentiment across the market." The brokerage also attributed the decline to broad-based profit-taking following the market's recent rally.
  • Awais Ashraf, director of research at AKD Securities, said investor sentiment had dampened amid escalating attacks between the US and Iran. Speaking to Dawn, he noted that the fighting had reduced traffic through the Strait of Hormuz to a five-week low and cast doubt on the future of the interim peace agreement signed last month. He added that heavyweight stocks contributed most to the early decline, despite falling only in the range of 1–1.7 per cent.
  • The refinery sector remained positive on expectations of the upcoming refinery policy, which is expected to pave the way for upgrades and expansions, according to Ashraf.
  • On Friday, value-hunting had helped the stock market reverse a three-session losing streak amid growing geopolitical concerns in the Middle East and concerns about the global economic impact of an oil supply disruption.

Perspectives

Market Analysts: Awais Ashraf of AKD Securities attributed the decline to dampened investor sentiment triggered by escalating US-Iran attacks, with heavyweight stocks leading the downturn. He also highlighted the positive outlook for the refinery sector.

Brokerage Houses: Topline Securities pointed to a risk-off sentiment driven by US-Iran exchanges and crude oil price increases, while also noting profit-taking after a recent rally. The firm provided detailed trading activity data.

Financial Portals: Mettis Global echoed the view that market sentiment was under pressure due to the fresh strikes between the US and Iran over the Strait of Hormuz.