PSX drops more than 2,000 points in intraday trade as selling pressure persists

Islamabad: The Pakistan Stock Exchange remained under pressure on Monday, with the benchmark KSE-100 index falling by more than 2,000 points during intraday trading as bearish sentiment continued to weigh on the market.

The KSE-100 index was down 2,171.16 points, or 1.31 per cent, at 163,424.91 points, compared with the previous close of 165,596.07 points.

The decline came as weakness in regional and global markets added to investor caution. Most Asian equities traded lower in morning dealings on Monday, extending losses seen in international markets as the deadlock in the Middle East pushed oil prices up by more than two per cent.

Investor sentiment has remained subdued amid the absence of meaningful progress in negotiations between the United States and Iran, while worries over the fragile situation in the Strait of Hormuz have heightened concerns about possible further disruption to global oil supplies.

Regional markets also under pressure

Across Asia, Tokyo stocks were down 1.0pc and Hong Kong fell 1.4pc, while Shanghai was unchanged. Other markets including Sydney, Bangkok, Taipei, Singapore and Wellington also posted losses, with Jakarta dropping 2.7pc.

The latest slide follows a weak run for the local bourse last week, when rising geopolitical tensions and continuing economic uncertainty kept investors cautious and pulled the KSE-100 index below its pre-war level.

On Friday, the PSX recorded its sixth consecutive losing session. The benchmark index shed 902.77 points to close at 165,596.07 points.

Outlook tied to geopolitical developments

Analysts expect trading at the PSX this week to remain closely linked to developments on the geopolitical front, especially the direction of US-Iran negotiations and movements in international oil prices.

They also expect investor participation to remain guarded ahead of the federal budget.

The market's latest performance reflects a broader pattern of caution among investors as uncertainty over external developments continues to shape sentiment both at home and across regional exchanges.

Additional input was provided by AFP.