Bears dominate PSX as geopolitical jitters shake investors’ confidence

KARACHI: Pakistan Stock Exchange (PSX) benchmark 100 Index closed in the negative zone Monday, falling 1,405 points or (-1.22%) closing at 114,063 level amid geopolitical jitters that continue to shake the market.

The trading session witnessed a classic tug-of-war between bulls and bears. The Index opened on a positive note, gaining strong momentum in the early hours of the session to register an intraday high of 1,189 points.

However, the optimism proved short-lived, as intensified selling pressure later in the session caused the Index to reverse sharply, touching an intraday low of 1,601 points, Topline Securities research stated.

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“Prevailing negative sentiment was largely driven by escalating tensions between India and Pakistan, which heightened investor concerns and weighed heavily on overall market confidence,” Topline Securities said.  

“The benchmark Index was pressured primarily by regional tensions that undermined investors confidence,” Ismail Iqbal Securities stated.

Trading volumes decreased to 190 million shares today as compared to 124 million shares in the previous session.

On the positive side, SYS, LUCK, MEBL, and HBL collectively contributed 489 points to the Index. Conversely, the bulk of the negative impact came from ENGROH, UBL, MARI, EFERT, and PSO, which together shaved off 907 points from the benchmark.

Below-expectation corporate results also disappointed investors further. NRL, PAEL, and Engro Holding disappointed investors, impacting stocks in a range of 5.4% to 9.7%, Chase Securities said. 

Despite the risk-averse sentiment, overall participation remained firm with volumes clocking in at 421 million shares and a turnover of PKR 26.43 billion. Underscoring continued investor engagement amid macro and geopolitical overhangs, Topline Securities said.

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Some mixed activity was witnessed in banking stocks, where UBL and MCB were down, ranging from 1% to 3.3%, while Meezan and HBL showed resistance against the market and closed 2% up, Chase Securities stated.