PSX drops 1,693 points on geopolitical worries

The Pakistan Stock Exchange ended lower on Monday, with the KSE-100 index shedding 1,692.74 points, or 0.97%, as higher crude prices and rising tension around the Strait of Hormuz weighed on sentiment. Losses began early, with the index 429.59 points lower by 9:39 am, before it slid to an intra-day low of 173,603.75 from a peak of 175,353.67. Pressure was heaviest in oil marketing firms, car assemblers, cement makers, banks and refineries.

Crude gained over $1 a barrel after retaliatory US-Iran exchanges around vessels near Hormuz revived fears of a longer disruption to regional supply. Iran's planned restricted zone in the Gulf and a new shipping corridor added to those supply worries. The developments also raised concerns about Pakistan's import bill and external account, adding uncertainty for oil-sensitive sectors.

Arif Habib Limited recorded only 12 advancers against 87 decliners, with UBL, OGDC and Pakistan Petroleum among the heaviest drags on the index. Adamjee Insurance and Askari Bank rose 3.23% and 1.54%, respectively, and were among the main contributors to the index's gains. Volume fell to 679.2 million shares from 874.3 million on Friday, with value at Rs23.7 billion, and Cnergyico led the volume chart with 82.5 million shares, ending Rs0.90 lower at Rs13.02.