Heavy buying in energy, banking, cement and other index-heavy sectors lifts the KSE-100 Index as investors assess geopolitical and oil-market risks.
KARACHI: The Pakistan Stock Exchange (PSX) regained momentum Monday as investors returned to major sectors, lifting the benchmark KSE-100 Index above the 181,000-point level during early trading despite continued geopolitical uncertainty.
At around 9:40 a.m., the KSE-100 was trading at 181,066.59 points, up 961.98 points, or 0.53%, from the previous close. Buying was visible across automobile assemblers, cement, commercial banks, fertiliser, oil and gas exploration, oil marketing companies, power generation and refineries.
Major index-heavy stocks including Mari Petroleum, Oil and Gas Development Company, Pakistan Petroleum, Pakistan Oilfields, Hub Power, Habib Bank, MCB Bank, Meezan Bank and United Bank traded in positive territory, providing broad support to the benchmark.
The rebound followed a difficult week for Pakistani equities. The KSE-100 closed the previous week at 180,104.61 points, down 1,325.41 points, or 0.7%, as geopolitical concerns weighed on investor sentiment.
Market participants remained focused on developments surrounding the US-Iran conflict, the future of the ceasefire and potential disruptions to global energy supplies. Shipping activity around the Strait of Hormuz and the Red Sea also remained an important concern because prolonged disruption could push up oil prices and raise costs for energy-importing economies.
Global markets remain cautious
The cautious sentiment extended to international markets, where Asian equities were largely subdued as investors assessed the economic implications of Middle East tensions.
Oil prices posted strong gains during the previous week amid concerns that prolonged regional instability could disrupt supplies. Brent crude was trading around $88.50 a barrel on Monday after gaining about 6% the previous week, while US West Texas Intermediate slipped about 0.3% to $82.12 following a weekly increase of roughly 5.4%.
Higher crude prices are particularly important for Pakistan because a sustained increase can raise the country’s import bill, place pressure on the external account and contribute to inflation.
Investors watch energy and geopolitical risks
For PSX investors, global energy developments carry additional significance because oil and gas companies have a substantial presence in the benchmark index. At the same time, higher fuel costs can affect operating expenses and profitability across other industries.
Regional markets also remained mixed. MSCI’s broadest index of Asia-Pacific shares outside Japan was broadly flat, while Japan’s Nikkei 225 gained around 0.4%.
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