KARACHI: The Pakistan Stock Exchange (PSX) opened on a negative note on Monday, extending last week’s losses as stalled US-Iran talks continued to fuel nervousness, prompting panicky investors to take profits at available margins and dragging the benchmark KSE-100 index lower for the seventh straight session.
Topline Securities Ltd noted that the benchmark index traded under sustained pressure throughout a highly volatile session, with investor sentiment remaining cautious amid a lack of meaningful progress in ongoing negotiations and continued uncertainty over developments between the US and Iran. Elevated crude oil prices further weighed on market confidence. During the session, the index recorded pronounced intraday volatility, falling to a low of 3,982 points at 161,613.51.
Ultimately, the benchmark index closed at 161,805.02 points, down 3,791.05 points or 2.29 per cent.
Heavyweight stocks, including Oil and Gas Development Company, Meezan Bank, United Bank, Pakistan Petroleum and Engro Holdings, remained under selling pressure, collectively contributing 1,159 points to the index’s decline.
Overall market activity declined significantly, with trading volume dropping 20.09pc to 499.8 million shares and traded value falling 12.86pc to R19.4 billion. Dost Steels Ltd topped the volume chart, trading 40 million shares.
The market witnessed extreme volatility as a dearth of positive triggers fuelled negative sentiment, with an uncertain economic outlook amid geopolitical concerns continuing to weigh on market direction ahead of the unveiling of the federal budget.
According to Arif Habib Ltd (AHL), the country recorded a current account deficit (CAD) of $324m in April, compared to a $12m deficit in the same month last year and a $1.134bn surplus in March. For the first 10 months of FY26, the CAD stood at $252m, down from a $1.662bn surplus during the same period last year.
The brokerage house noted that Iran described talks with the US as an ongoing process through Pakistan and stated that it has communicated its views to the Americans regarding the recent proposal.
Global markets, however, were feeling the heat from rising yields, with the US 10-year Treasury yield at 4.6pc and Brent crude futures rose $2.15, or 2.0pc, to $111.41 a barrel, while US West Texas Intermediate crude rose $1.98, or 1.9pc, to $107.40.
Published in Dawn, May 19th, 2026