KARACHI: After a long Ashura break, the Pakistan Stock Exchange (PSX) came under renewed selling pressure on Monday. This followed exchanges of military strikes between the US and Iran over the weekend, heightening geopolitical uncertainty in the Middle East.

The disruption to oil supplies through the Strait of Hormuz is expected to persist, potentially affecting global energy prices and economic stability. As a result, the benchmark KSE 100 index recorded a volatile session, closing lower. This volatility prompted equity investors to lock in profits, leading to further declines.

Topline Securities Ltd said the benchmark KSE-100 index ended the session lower, closing at 178,414.79 points, down 1,156.47 points, or 0.64 per cent.

The market opened on a positive note, reaching an intraday high of 180,272.01 points, extending the bullish momentum from the final session of the preceding week on Wednesday. However, significant profit-taking emerged in the latter half of the session, pulling the index down to an intraday low of 178,331.00 points before it settled near the day’s low.

The decline was primarily driven by broad-based profit-taking as investors chose to lock in gains despite a supportive macroeconomic backdrop. Positive developments, including easing geopolitical tensions, investor-friendly amendments to the Finance Bill 2026-27, and lower domestic fuel prices, helped cushion sentiment but were insufficient to offset selling pressure.

Overall, market sentiment remained cautious, with profit-taking dominating trading activity in the second half of the session. Going forward, investors are expected to closely monitor key macroeconomic indicators, corporate developments, and the upcoming earnings season for further guidance.

On the index contribution front, heavyweight stocks Fauji Fertiliser, Hub Power, Oil and Gas Development Company, Bank Alfalah, and Lucky Cement were the main drags on the benchmark index, together accounting for approximately 596 points of the day’s decline.

However, investor participation improved as the trading volume rose 2.12pc to 869 million shares and the traded value up 8.82pc to Rs43.9 billion.

Ali Najib, Deputy Head of Trading at Arif Habib Ltd, said the PSX witnessed a volatile session, with investor sentiment remaining cautious. Renewed geopolitical uncertainty over the weekend weighed on market momentum, prompting profit-taking and keeping the benchmark in negative territory.

On the news front, Pakistan carried out cross-border military strikes targeting militants along the Afghanistan border, while Petroleum Minister Ali Pervaiz Malik said the government is considering imports of cheaper Iranian oil and gas.

Meanwhile, media reports indicated that the government has drafted a new five-year Auto Policy (2026-31), proposing substantial cuts in import duties and taxes to revive the automotive sector and improve affordability.

Published in Dawn, June 30th, 2026