ISLAMABAD: The Pakistan Stock Exchange (PSX) fell sharply and lost more than 2,000 points during the intraday trade on Monday, with analysts blaming the slump on geopolitical uncertainty linked to heightened tensions in the region.
The benchmark KSE-100 index lost 2,025.53 points, or 1.1 percent, to close at 182,384.14 points, down from 184,409.67 points at the weekend close, according to PSX data.
The development came amid public unrest in Iran over worsening economic conditions, with the death toll reaching nearly 550 and the government arresting more than 10,600 people in a crackdown.
US President Donald Trump said late Sunday his administration was in talks to set up a meeting with Tehran but cautioned he may have to act first as reports mount of increasing deaths and the government continues arrests.
“[Pakistan] stocks slumped on geopolitical uncertainty,” Ahsan Mehanti, chief executive officer at Arif Habib Commodities, told Arab News. “Weak global equities, political noise, and security unrest played a catalyst role in selling activity at PSX.”
Meanwhile, Pakistani market research firm Topline Securities said activity slowed noticeably as buying interest from local funds eased after last week’s strong rally.
“With the market having advanced nearly 3 percent on a WoW (week on week) basis, investors chose to lock in gains, resulting in broad-based profit-taking during the session,” it said on X.
“The pullback appears to be a healthy consolidation after the recent sharp up-move, rather than a shift in the market’s underlying sentiment.”
It said that a total of 1,055 million shares were traded at the market on Monday, with Fauji Foods Limited (FFL) topping the volume chart with 65.6 million shares.
Pakistan’s stock market has gained momentum in recent months as broad institutional buying boosted investor confidence amid ongoing economic reforms under international lending programs.
Around 135,000 new investors have joined the PSX over the last 18 months. Last week, Pakistani stocks climbed to a fresh all-time high with the benchmark KSE-100 Index crossing the 186,000-point mark for the first time ever.
