PSX falls over 4,000 points in early trade amid uncertainty

KARACHI: The Pakistan Stock Exchange (PSX) began the first trading day of the week on a rough note as the benchmark KSE-100 Index plunged sharply on Monday morning, with investors reacting to rising cross-border tensions between Pakistan and Afghanistan.

At the start of trading, the market slipped deep into negative territory, falling by more than 3,000 points within minutes of opening. Around 9:34 AM, the benchmark index was down by 3,040.24 points, settling at 160,057.95 with a trading volume of 23.3 million shares.

Although a brief recovery attempt was seen later in the morning, the index remained in the red, touching an intraday high of 161,988.12 by 9:42 AM, still showing a decline of over 1,100 points.

By 10:44 AM, the KSE-100 Index was hovering at 161,491.50, reflecting a loss of 1,606.69 points, or 0.99 percent. The intraday low stood at 160,057.95, while the highest level recorded so far during the session was 161,988.12.

Geopolitical tensions trigger sharp sell-off

Market analysts attributed the sharp fall to heightened geopolitical concerns following reports of cross-border escalation over the weekend. The uncertainty has rattled investors, prompting widespread profit-taking after recent gains that had pushed the index close to record levels.

The selling pressure is mainly due to the developments over the weekend, including geopolitical factors and cross-border tensions. Investors are acting cautiously amid uncertainty.

Despite the sharp intraday losses, the broader outlook of the stock market remains relatively strong compared to last year. The KSE-100 Index is still up 88.92 percent on a year-on-year basis, while the year-to-date gain stands at 40.27 percent. Over the past 52 weeks, the index has moved between a low of 84,774.46 and a record high of 169,988.62.

Top gainers and decliners

Among the top gainers of the day, First Credit and Investment Bank Limited (FCSC) rose 14.29 percent to Rs7.20, while Wasl Investment Limited (WASL) surged 12.82 percent to Rs8.80. Other notable performers included Dewan Sugar Mills (DWSM), Allied Home Textiles (AHTM), and Dewan Motors Company (DMC), all climbing by around 10 percent.

In contrast, the top decliners included Pak Suzuki Motor Company (PASM), which dropped 12.53 percent to Rs6.56, and TPL Corp’s preference shares (TCORPCPS), down 11.42 percent to Rs7.06. Other laggards were Dandot Insurance (DIIL), GEM Blue (GEMBLUEX), and ANTM, each losing close to 10 percent.

Market performance by sector

Looking at the KSE-100 constituents, several blue-chip companies were under pressure. Major losses were recorded in systems and banking stocks. Systems Limited (SYS) fell 2.58 percent to Rs151.97, while MCB Bank dropped 2.49 percent to Rs357.50. Pakistan Petroleum Limited (PPL) declined 2.50 percent to Rs185.15, and Oil and Gas Development Company (OGDC) slipped 1.63 percent to Rs259.66.

Cement and textile stocks also faced selling pressure, with Maple Leaf Cement Factory (MLCF) down 2.62 percent and Nishat Mills Limited (NML) losing 2.09 percent. Investors opted to book profits in these sectors after recent strong rallies.

Still, a few names managed to resist the overall bearish trend. Unity Foods Limited (UNITY) surged 10 percent to Rs26.19, continuing its upward momentum. Adamjee Insurance (AICL) rose 6.24 percent to Rs89.00, while TRG Pakistan advanced 3.12 percent to Rs76.75. Other gainers included Pakistan Telecommunication Company (PTC), which increased by 2.36 percent, and Engro Holdings (ENGROH), up 1.45 percent to Rs244.25.

KSE-100 continues downward slide in midday session

Around 11:56 AM, the PSX extended its losses as the KSE-100 Index dropped by 4,139 points to 158,959, showing a decline of 2.54 percent with a trading volume of 335.99 million shares. By 12:28 PM, the market was down by 3 percent, with the index losing 4,897.22 points to reach 158,200.97 as the trading volume stood at 369.47 million shares.

Previous week’s close and outlook

Today’s weakness follows a volatile session on Friday, when the PSX closed the previous week at 163,098.19 after shedding 1,432.61 points or 0.87 percent. That session had also seen heavy selling in large-cap stocks like Engro Holdings, Systems Limited, MCB Bank, and Habib Bank Limited, which dragged the index lower.

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