PSX: KSE-100 settles nearly 2,300 points lower on political uncertainty, higher oil prices

Business Recorder reported that the Pakistan Stock Exchange faced persistent selling on Monday, with the KSE-100 index closing 2,288.18 points, or 1.36 per cent, lower at 165,867.31. Sales gathered pace around midday, dragging the index under 166,000 and down to 165,764.20 at its lowest point near 1pm. A short afternoon rebound above 166,000 was wiped out by fresh offloading before the close.

Saad Hanif of Ismail Iqbal Securities linked the decline to local political uncertainty and elevated oil prices, which he said were feeding inflation and macroeconomic concerns. Sana Tawfik of Arif Habib Limited said the market's direction would depend on crude prices, the domestic political situation and the Monetary Policy Statement, with the policy rate either held or revised.

Topline Securities, in its post-market report, attributed the decline to a lack of new positive catalysts and renewed political uncertainty, including an opposition long march that followed failed government-opposition talks. The brokerage said UBL, ENGROH, HBL, HUBC and PPL were the main laggards, together removing 705 points from the index. Trading volume eased to 441.90 million shares, and the value of shares traded fell to Rs15.71 billion. Of the 499 companies traded, 409 recorded declines and 55 advanced.