Selling pressure was observed at the Pakistan Stock Exchange (PSX), with the benchmark KSE-100 Index shedding over 1,200 points during the opening hours of trading on Monday.
At 10:40am, the benchmark index was hovering at 169,892, down by 1,223.53 points or 0.72%.
Selling was observed in key sectors, including cement, commercial banks, oil and gas exploration companies, OMCs and power generation. Index-heavy stocks, including HUBCO, MARI, OGDC, PPL, PSO, SSGC, SNGPL, HBL, MCB, MEBL and UBL, traded in the red.
During the previous week, Pakistan’s stock market staged a strong recovery, with the benchmark KSE-100 Index gaining 5%, or 8,121.64 points, as improving diplomatic sentiment surrounding a possible peace memorandum between the United States and Iran lifted investor confidence after weeks of geopolitical uncertainty.
The benchmark KSE-100 Index opened the week at 162,994.17 points and closed at 171,115.81 points.
Internationally, the US dollar climbed in Asia on Monday on signs that talks between the United States and Iran were deadlocked, leaving the vital Strait of Hormuz all but shut and sending oil prices higher.
US stock futures wobbled, and in Asia, gains in a handful of AI-related stocks lifted share markets in Seoul and mainland China.
President Donald Trump on Sunday rejected Iran’s response to a US proposal for peace talks to end the war, saying Tehran’s demands were “totally unacceptable.”
An Iranian plan sent to the US stressed the need for an end to the war on all fronts and the lifting of sanctions on Tehran, along with reparations and a recognition of Iran’s control of the Strait, Iranian media reported.
S&P 500 futures slipped 0.1%, while Nasdaq futures eased 0.05%. Shares had hit record highs last week on the back of upbeat corporate earnings and a solid payrolls report.
Results out this week include tech networking equipment firm Cisco and semiconductor equipment maker Applied Materials. Heavyweights Nvidia and Walmart are due later in the month.
Japan’s Nikkei fell 0.36%, erasing earlier gains. South Korea’s chipmaker-heavy KOSPI index rose 4%.
This is an intraday update
