PSX plunges over 1,700 points amid Middle East tensions

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This screengrab shows activity at the PSX on April 20.  — PSX data portal
This screengrab shows activity at the PSX on April 20. — PSX data portal

The Pakistan Stock Exchange (PSX)’s benchmark index KSE-100 plunged by over 1,700 points on Monday amid uncertainty over the Middle East conflict.

The KSE-100 declined by 1,742.31 points or 1 per cent to close at 172,196.70 from the previous close of 173,939.01 points.

The KSE-100 rose to an intraday high of 174,523.76 points at around 11:55am, then declined to an intraday low of 169,226.56 points at 1:05pm, before settling at 172,196.70.

According to Topline Securities, the trading began on a “subdued note, reversing the previous session’s upward momentum, with the benchmark index declining to an intraday low of 4,712 points”.

“Investor sentiment remained cautious amid escalating geopolitical tensions,” it said, citing increased concerns due to the US seizure of an Iranian-flagged cargo vessel in the Strait of Hormuz and uncertainty over Iran’s participation in the 2nd round of US-Iran talks in Islamabad.

“Earlier indications of potential diplomatic engagement, including the possibility of a US delegation visiting Islamabad, were overshadowed by these developments,” Topline Securities said.

“Despite this, the market failed to stage a sustained rebound and ultimately closed in negative territory at 172,196, registering a decline of 1,742 points, or 1pc,” it added.

Topline Securities further noted that index-heavy stocks, including Fauji Fertiliser Company, Habib Bank Limited, Hub Power Company Limited, Lucky Cement Limited, and Engro Holdings Limited, “remained under significant selling pressure, collectively dragging the benchmark index down by 905 points”.

“Market activity remained modest, with total traded volume recorded at 1,296 million shares, while turnover stood at Rs. 65.3 billion,” the statement said, adding that the Bank of Punjab “led the volume chart, with 120m shares traded”.

Last week, the PSX witnessed a significant recovery amid easing geopolitical tensions in the Middle East and expectations of a softer monetary policy as declining oil prices temper inflationary pressures.

The KSE-100 index rose 4pc week-on-week to close at 173,939 points, gaining 6,748 points, according to Arif Habib Ltd (AHL).

Though the index surpassed its pre-war level of 168,062 on April 15 — highlighting a robust recovery in market sentiment — it remains around 15,227 points below its all-time high of 189,166.83 points recorded on January 23.

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