PSX opens week in the red, plummets 1,600 points during intraday trade

The Pakistan Stock Exchange (PSX) began the week in the red, with the benchmark index plummeting by 1,600 points during intraday trade on Monday.

The KSE-100 index lost 2,215.27 points at 10:19am, to stand at 180,026.5 points from the previous close of 182,241.77 points. However, some improvement was seen around 1pm, with the index down 1,654.19 points.

Mettis Global, a web-based financial portal, said market sentiment remained under pressure after the US and Iran exchanged fresh strikes in an escalating contest over control of the Strait of Hormuz. Oil prices also jumped more than four per cent on Monday due to the renewed fighting.

Awais Ashraf, director of research at AKD Securities, said investor sentiment had dampened amid escalating attacks between the US and Iran.

Speaking to Dawn, he said the fighting had reduced traffic through the Strait of Hormuz to a five-week low and cast doubt on the future of the interim peace agreement signed last month.

He said that heavyweight stocks contributed the most to the early decline at the KSE-100 on Monday, despite falling only in the range of 1–1.7pc.

“Meanwhile, the refinery sector remained positive on expectations of the upcoming refinery policy, which is expected to pave the way for much-needed upgrades and expansions,” he said.

On Friday, value-hunting had helped the stock market reverse a three-session losing streak amid growing geopolitical concerns in the Middle East and the fallout on the global economy from an oil supply disruption fuelling inflationary pressure in countries reliant on supplies from the Strait of Hormuz. ...