The Pakistan Stock Exchange (PSX) erased early gains on Monday, with the benchmark KSE-100 Index falling more than 300 points by midday. Investor sentiment weakened amid rising global oil prices and uncertainty over the fragile United States-Iran ceasefire. The decline reflected cautious trading despite positive early momentum.
The market opened higher, with the KSE-100 Index gaining more than 400 points during the opening minutes. However, selling pressure reversed those gains, leaving the benchmark at 179,257.01, down 314.25 points, or 0.19%, by midday. The index traded within a range of 180,272.01 and 179,158.98 during the session.
Trading activity remained steady, with 172.56 million shares changing hands and a turnover of Rs17.77 billion. Buying interest emerged in cement, commercial banks, oil and gas exploration companies, oil marketing companies, power generation firms, and refinery stocks. Nevertheless, losses in selected heavyweight shares kept the market in negative territory.
Market participants continued to monitor developments in the Middle East as doubts persisted over the durability of the US-Iran ceasefire. Rising oil prices following recent military exchanges between the two countries also weighed on investor confidence. Concerns over energy supply disruptions through the Strait of Hormuz added to market uncertainty.
Analysts said geopolitical risks and fluctuations in global commodity prices are likely to remain key drivers of market sentiment in the near term. Investors are expected to stay cautious until regional tensions ease and greater economic clarity emerges.