PSX: KSE-100 down nearly 400 points amid political noise

The Pakistan Stock Exchange (PSX) experienced a significant drop in its benchmark KSE-100 Index on Monday, with the index losing nearly 400 points due to political turmoil. At 9:35am, the index was trading at 166,689.53, down 399.74 points or 0.24%. Selling pressure was observed in various sectors such as automobile assemblers, cement, commercial banks, oil and gas exploration companies, OMCs, and power generation.

Key index-heavy stocks like HUBCO, MARI, OGDC, POL, PSO, MCB, MEBL, NBP, and UBL were trading in the red. The situation was fueled by persistent US-Iran tensions, ongoing military clashes between Saudi Arabia and Houthi forces in Yemen, and heightened regional security concerns. In the previous week, the PSX had already witnessed selling pressure due to the same factors, with the KSE-100 Index falling by 1,066.20 points, or 0.6%, as compared to the previous week.

Internationally, Asian share markets started cautiously on Monday, with earnings season looming as a challenge to high tech valuations. Oil prices were volatile following strikes on shipping and airports in the Gulf. There was also confusion surrounding President Donald Trump's announcement of an energy ceasefire between Ukraine and Russia, which neither side had confirmed.

Trump's proposal for Russia to increase its exports of diesel also faced criticism from both Republican and Democratic senators for potentially being illegal. South Korean stocks declined by 1.1%, while MSCI's broadest index of Asia-Pacific shares outside Japan remained unchanged. On Wall Street, S&P 500 futures increased slightly by 0.2%, while Nasdaq futures rose by 0.5%.

In Europe, EUROSTOXX 50 futures gained 0.4%, DAX futures increased by 0.4%, and FTSE futures added 0.3%. The trading activity was thin with Japanese markets closed and the US on a partial holiday before the earnings season. Major US banks commenced trading on Tuesday. S&P 500 earnings for the third quarter were projected to surge by more than 30%, according to LSEG IBES, with the majority of growth coming from the tech sector. This report is an intraday update.