PSX drops more than 3,000 points in intraday trade amid uncertainty

KARACHI: The Pakistan Stock Exchange’s benchmark KSE-100 index fell by more than 3,000 points during intraday trading on Monday, reversing part of the strong recovery recorded last week.

According to market figures cited in the report, the KSE-100 was down 3,145.02 points, or 1.81 per cent, at 170,793.99 by 1:39pm, compared with the previous close of 173,939.01.

The decline came amid uncertainty over whether a second round of talks between the United States and Iran would take place in Islamabad.

Sharp reversal after last week’s recovery

The market had posted a notable rebound in the previous week as geopolitical tensions in the Middle East eased and investors anticipated a softer monetary policy stance. Lower oil prices had helped temper inflationary pressures, supporting that expectation.

According to Arif Habib Ltd, the KSE-100 index rose 4pc week-on-week to settle at 173,939 points, adding 6,748 points over the course of the week.

That recovery had taken the benchmark above its pre-war level of 168,062 recorded on April 15, reflecting an improvement in investor sentiment after earlier pressure linked to regional tensions.

Even so, the index remained well below its record peak. Despite the rebound, the KSE-100 was still around 15,227 points lower than its all-time high of 189,166.83 points reached on January 23.

Market context

Monday’s intraday slide underscored the sensitivity of the local bourse to regional developments. The latest fall followed a week in which investors had returned to equities on expectations that easing tensions and softer inflation dynamics could improve the outlook for monetary policy.

The renewed pressure, however, emerged as uncertainty resurfaced over the diplomatic track involving Washington and Tehran, with Islamabad in focus over the possibility of hosting another round of talks.

The benchmark’s movement showed that while the market had recovered strongly from earlier losses and moved above the level seen on April 15, sentiment remained vulnerable to geopolitical developments.

At 1:39pm, the KSE-100 stood at 170,793.99 after losing 3,145.02 points in intraday trade, compared with the previous close of 173,939.01.

Last week’s gains had offered relief to investors after earlier volatility, but Monday’s trading indicated that caution had returned to the market as uncertainty persisted around regional developments and the expected diplomatic engagement.