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The Pakistan Stock Exchange (PSX) closed sharply lower on Monday as escalating geopolitical tensions notably the Iran‑US standoff, unease in Venezuela, and broader instability across the Middle East and South Asia spooked investors and drove a wave of risk‑off selling across local equities. The benchmark KSE‑100 index plunged 2,025.52 points to finish at 182,384.14, reflecting renewed caution among market participants.
Trading opened under intense pressure with broad‑based selling hitting key sectors including banks, oil and gas, cement, and investment companies. Despite a brief mid‑day rally that lifted the index to an intra day high of 184,439.07, the recovery lacked momentum and sellers regained control, dragging the benchmark to a low of 182,303.56 before a mild late‑session stabilisation.
Market analysts and brokers noted that the sell‑off was corrective rather than trend‑breaking, driven by heightened global risk sentiment amid ongoing geopolitical uncertainty.
“Investors opted to lock in gains after recent strong runs, with risk aversion rising sharply on external news,” said a market wrap by KTrade Securities.
Although the index declined, trading volumes remained elevated, with over 1.05 billion shares changing hands, indicating active repositioning rather than outright panic. Of the 481 companies traded, 284 closed lower while 161 managed gains and 36 remained unchanged. Fauji Foods led by volume with 65.7 million shares traded, closing modestly higher.
Investors will eye developments over the coming sessions, as clarity on geopolitical developments particularly between Iran and the United States could determine whether markets stabilise or continue to see heightened volatility.
