KARACHI: The Pakistan Stock Exchange (PSX) remained under selling pressure for the second consecutive session on Monday as the absence of a peace deal in the Middle East fuelled doubts over the sustainability of the fragile ceasefire, while oil prices resumed their upward trajectory.

According to Topline Securities Ltd, the benchmark index endured a volatile and range-bound session as investor sentiment stayed fragile amid the lack of concrete progress in ongoing negotiations and persistent uncertainty surrounding developments between the United States and Iran.

The market witnessed sharp intraday fluctuations, with the index plunging by as much as 1,532 points before staging a partial recovery.

Despite the rebound, the benchmark KSE-100 index settled at 170,506 points, down 609 points, or 0.36 per cent, from the previous session.

Fragile ceasefire fears keep investors cautious

Index-heavy stocks, including United Bank, Lucky Cement, Engro Holdings, Meezan Bank and National Bank, collectively dragged the index down by 667 points.

Amid heightened volatility, total trading volume rose 7.01pc to 1.103 billion shares, while traded value fell 15.33pc to Rs31.04bn. K-Electric led the volume chart, with 376 million shares traded.

Ali Najib, Deputy Head of Trading at Arif Habib Ltd, said the PSX witnessed a range-bound session as the market momentum remained subdued amid persistent geopolitical tensions, as aggressive rhetoric from US and Iranian officials heightened concerns over further escalation in the region.

On the macroeconomic front, remittances from overseas Pakistanis rose 11pc year-on-year to $3.5bn in April, although they declined 8pc month-on-month.Analysts believe developments relating to the US-Iran situation will remain a key catalyst for market direction. While no formal schedule for talks has been confirmed, ongoing diplomatic engagement and backchannel contacts suggest negotiations are likely to continue in the near term.

Published in Dawn, May 12th, 2026