By Staff Reporter
KARACHI: The Pakistan Stock Exchange’s benchmark index tumbled more than 5,400 points on Monday, capping a volatile session marked by persistent selling as investors weighed escalating US-Iran tensions and fresh uncertainty around American trade policy.
The KSE-100 Index closed at 167,691.08, down 5,478.63 points or 3.16%. After opening relatively steady and touching an intraday high of 174,336.85, the gauge slipped into negative territory before accelerating lower in early afternoon trade. It briefly breached key psychological support levels before a modest late-session recovery that failed to erase most of the losses.
The selling pressure stemmed from uncertainty on the geopolitical front, alongside this being a rollover week, Sana Tawfik, head of research at Arif Habib Limited, said. Analysts also pointed to a fresh wave of unease over US trade policy after President Donald Trump announced a new global tariff rate over the weekend, first at 10% and then raising it to 15%.
During the trading day, the index fluctuated within the range of 174,336 to 166,886 points, largely influenced by rollover-week dynamics, Topline Securities said in its market review. Index-heavy constituents — including Fauji Fertilizer Company, Lucky Cement, Engro Holdings, National Bank of Pakistan and Habib Bank Ltd. — were the principal laggards, collectively dragging the benchmark down by 1,797 points.
The move extended a bruising week for Pakistani equities. The KSE-100 had already fallen 6,434.02 points, or 3.6%, in the prior five sessions to close at 173,169.70, one of the steepest weekly declines in recent months, as risk-off sentiment gripped global markets amid rising oil prices and US-Iran tensions.
Globally, Wall Street futures and the dollar slid in Asian hours as confusion over US tariffs revived the “sell America” trade. Confidence in the artificial-intelligence sector faces a test this week from Nvidia’s results. Gold gained while oil eased ahead of another round of US-Iran talks scheduled for Thursday in Geneva, with the risk of American military strikes still in play if no deal materializes.
Uncertainty intensified after the US Supreme Court struck down Trump’s emergency tariffs, prompting him to announce the new 10% rate on the rest of the world before lifting it to 15% — a shift that appeared to catch even some administration officials off guard. Details remained unclear on timing, exemptions and whether every country would face the full 15%. Some nations, including the UK and Australia, previously faced 10% rates, while many in Asia saw higher levels.
In Karachi, the trading volume on the all-share index eased to 461.26 million shares from 537.64 million in the previous session. The value of shares traded, however, edged higher to 24.93 billion rupees from 23.79 billion rupees. K-Electric led turnover with 36.06 million shares, followed by WorldCall Telecom at 33.67 million and Bank of Punjab at 26.67 million. Of the 479 companies that changed hands, just 42 advanced, 389 declined and 48 closed unchanged.
“The market remained under sustained pressure, as investors stayed wary of escalating geopolitical tensions between the United States and Iran, prompting cautious positioning,” Huzaifa Riaz, director at Mayari Securities Pvt. Ltd., said. “The absence of any meaningful near-term trigger, coupled with the commencement of the roll-over period, further contributed to volatility, keeping the bias lower.”
Analysts remain cautious but see potential catalysts ahead. AKD Securities noted that geopolitical developments and the outcome of the upcoming IMF review mission, due next week, will be key for sentiment. The corporate earnings season could also provide some lift if results beat expectations.
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