Pakistan’s stock market came under heavy selling pressure on Monday as investors adopted a cautious stance ahead of the federal budget, pushing the benchmark KSE-100 Index sharply lower during intraday trade.
The market opened on a weak note and selling accelerated in the early session. By around 9:39am, the KSE-100 Index had dropped more than 1,550 points, slipping to 172,405 points. Although some buying later helped trim losses, the benchmark remained firmly in negative territory throughout the day.
At around 1:19pm, the index was trading at 172,771.76 points, down 1,191.05 points, or 0.68 percent, from the previous close of 173,962.81 points. During the session, the market touched an intraday high of 174,171.64 points and a low of 172,405.97 points, while trading volume crossed 149 million shares.
Market participants said investors were reluctant to take aggressive positions ahead of the federal budget scheduled for June 5. Concerns over the government’s efforts to meet International Monetary Fund (IMF) requirements while also introducing politically popular measures added to the uncertainty.
Regional geopolitical developments also weighed on sentiment. Ongoing tensions in the Gulf kept investors on edge, prompting many to lock in profits after the market’s strong rally last week.
Selling was seen across several major sectors, including automobile assemblers, cement manufacturers, commercial banks, oil and gas exploration companies, oil marketing firms and power producers. Some of the market’s largest stocks, including HUBCO, Mari Energies, Oil and Gas Development Company, Pakistan Oilfields, Pakistan Petroleum, Habib Bank, MCB Bank, Meezan Bank, National Bank of Pakistan and United Bank, traded in the red.
The decline follows a strong performance in the previous week when Pakistani equities staged a sharp recovery. Improved economic indicators at home and easing tensions in the Middle East boosted investor confidence, helping the KSE-100 Index gain more than 6,100 points, or around 4 percent, in the holiday-shortened week. The benchmark ended the week at 173,963 points.
Meanwhile, international markets presented a mixed picture. Asian equities remained supported by continued enthusiasm surrounding artificial intelligence and semiconductor-related companies. Japan’s Nikkei extended gains after reaching fresh record highs last week, while markets in South Korea and Taiwan also remained strong.
However, uncertainty surrounding developments in the Middle East kept investors cautious globally. Reports of limited progress in negotiations involving Iran, along with renewed concerns about regional security, pushed oil prices higher. Brent crude rose close to 2 percent to trade near $93 per barrel, while US crude gained more than 2 percent to around $89 per barrel.
Despite positive trends in several Asian markets, investors at the PSX appeared focused on budget expectations and regional risks, leading to broad-based selling across the trading floor.
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