Pakistan’s benchmark KSE-100 index came under heavy selling pressure on Monday, falling below the 166,000-point level as political uncertainty, regional tensions and elevated oil prices weighed on investor sentiment.
Market capitalisation declined by around Rs261 billion during the session as investors reduced their positions amid concerns over the political situation and the broader economic outlook.
Topline Securities Ltd said the KSE-100 index fell 2,391 points during intraday trading to reach 165,764.21 before closing at 165,867.32, down 2,288.17 points, or 1.36 per cent, from the previous session.
Analysts attributed the decline largely to the absence of fresh positive market catalysts and renewed political uncertainty. The opposition’s march began after government-opposition negotiations failed to produce an agreement, raising concerns about further political disruption.
International crude oil prices also remained a key concern for investors, adding to macroeconomic uncertainty. With limited positive triggers, investors opted to reduce exposure, resulting in broad-based selling across major sectors.
Ali Najib, Deputy Head of Trading at Arif Habib Ltd, said the index extended its previous week’s losses amid heightened domestic and regional political uncertainty and higher oil prices. He said the developments increased risk aversion and triggered selling across key sectors, with the index breaching the 166,000 level, considered an important support.
Regional tensions also remained elevated as Yemen launched a military campaign against Houthi-held territory.
On the sectoral front, cement dispatches increased 6 per cent year-on-year to 4.62 million tonnes in September, supported by stronger domestic demand. Dispatches during the first quarter of FY27 rose 4pc to 13.14 million tonnes.
Meanwhile, PTI launched a march towards Islamabad after talks with the government broke down over several demands, including access to Imran Khan. Authorities responded by blocking key routes.
United Bank, Engro Holdings, Habib Bank, Hub Power, Pakistan Petroleum, Oil and Gas Development Company, Fauji Fertiliser, National Bank, Pakistan Stock Exchange and Bank Al-Habib were among the major stocks that dragged the KSE-100 index lower, collectively contributing to a decline of 1,114 points.
Trading activity also weakened during the session. Volume fell 10.53pc to 441.89 million shares, while the total turnover value declined 10.18pc to Rs15.7 billion. First National Equities Ltd topped the volume chart with 50.2 million shares traded.
Analysts expect the stock market to remain volatile and range-bound in the near term amid continued domestic political uncertainty and geopolitical tensions. Higher oil prices could further pressure external balances, fuel inflation and weigh on corporate profit margins.
However, improvements in the domestic or regional political environment could provide support to market sentiment and help stabilise trading activity.
