PSX plunges by nearly 3,800 points as investors remain cautious amid geopolitical tensions

The Pakistan Stock Exchange’s (PSX) benchmark index extended its losing streak to a seventh straight session on Monday as the market plunged by nearly 3,800 points. The KSE-100 index declined by 3,791.05 points or 2.29 per cent to close at 161,805.02 points from the previous close of 165,596.07. The market traded in red the entire day, recording an intraday high of 164,939.08 points at around 10am, before witnessing a steady decline to reach an intraday low of 161,613.51 points shortly before close. Investor sentiment has remained depressed amid a lack of tangible progress in the US-Iran negotiations, while concerns over the fragile situation in the Strait of Hormuz fuelled fears of further disruption to global oil supplies. Topline Securities Limited noted that KSE-100 “traded under sustained pressure throughout a highly volatile session”. It highlighted that “investor sentiment remained cautious amid the lack of meaningful progress in ongoing negotiations and continued uncertainty surrounding developments between the United States and Iran”. It pointed out that elevated crude oil prices further weighed on market confidence. Heavyweight stocks, including Oil & Gas Development Company Limited (OGDC), Meezan Bank Limited (MEBL), United Bank Limited (UBL), Pakistan Petroleum Limited (PPL), and Engro Holdings Limited (ENGROH), “stayed under selling pressure, collectively contributing 1,159 points to the index’s decline”, Topline said. “Overall market activity remained healthy, with total traded volume clocking in at 499.8 million shares, while market turnover stood at Rs19.4 billion. DSL led the volume chart, with 40 million shares traded during the session,” it added. Last week , heightened geopolitical tensions and persistent economic uncertainty kept investors on edge, dragging KSE-100 below the pre-war level. The PSX extended its losing st...

Original source: Dawn Pakistan