PSX slips 340 points as oil surge and US-Iran impasse weigh on sentiment

The benchmark KSE-100 index at the Pakistan Stock Exchange fell 339.60 points, or 0.20%, to settle at 170,425.62 on Monday, erasing early gains as investors weighed geopolitical uncertainty and rising crude prices.

The index opened the week higher, climbing 273.36 points, or 0.16%, to 171,038.58 by 9:33am, before profit-taking turned the session volatile. It moved between an intraday high of 171,126.52 and a low of 170,120.50. According to the report, the pressure came as Brent crude prices rebounded more than 3% in Asian trading after US President Donald Trump rejected an Iranian proposal aimed at resolving the conflict and reopening the Strait of Hormuz, keeping Middle East tensions elevated.

Arif Habib Limited analyst Ali Najib described the session as range-bound, saying investor sentiment remained fragile and market participants stayed on the sidelines. He cited media reports that Trump had rejected an Iranian ceasefire proposal concerning the Strait of Hormuz while declining to comment on potential post-midterm military actions.

On index contribution, TRG Pakistan, Fauji Fertiliser, Oil & Gas Development Company, Attock Refinery and Hub Power collectively added 264 points, according to the analyst. Those gains were offset by selling pressure in United Bank, Habib Bank, Lucky Cement, Engro Holdings and Mari Energies, which dragged the index down by 321 points.

Trading volume decreased to 421 million shares from Friday's 482.7 million, with traded value at Rs17.7 billion. Of 496 companies traded, 181 stocks rose, 267 fell and 48 were unchanged. Cnergyico PK led on volume with 61.6 million shares, rising Rs0.14 to close at Rs13.32. Najib wrote that sentiment was expected to remain volatile, with selective buying likely if geopolitical tensions continued to ease and oil prices trended lower, while elevated energy prices, external-sector risks and the upcoming IMF review would remain key factors influencing market direction.