KARACHI: The Pakistan Stock Exchange (PSX) on Monday failed to sustain last week’s bullish spell as fears of the economic fallout from the ongoing Middle East conflict resurfaced amid uncertainty over a second round of peace talks, triggering panic-selling that pushed the index below the 170,000 mark intraday.
Topline Securities Ltd said the PSX commenced trading on a subdued note, reversing the previous week’s four-session upward momentum, with the benchmark index declining by 4,712 points to an intraday low of 169,226.56.
Investor sentiment remained cautious amid escalating geopolitical tensions. Concerns intensified following reports that the United States seized an Iranian-flagged cargo vessel in the Strait of Hormuz, while Iran signalled that no further rounds of talks are currently planned. Earlier indications of potential diplomatic engagement, including the possibility of a US delegation visiting Islamabad, were overshadowed by these developments.
Resultantly, the market failed to stage a sustained rebound and ultimately closed in the red at 172,196, registering a decline of 1,742 points, or 1 per cent.
Investor sentiment weakens as US-Iran uncertainty fuels selling pressure
Index-heavy stocks, including Fauji Fertiliser, Habib Bank, Hub Power, Lucky Cement, and Engro Holdings, remained under significant selling pressure, collectively dragging the benchmark index down by 905 points.
Investor participation weakened, with total trading volume falling 10.02 per cent to 1.296 billion shares, while traded value dipped 4 per cent to Rs65.3bn. Bank of Punjab led the volume chart, with 120 million shares traded.
Ali Najib, Deputy Head of Trading at Arif Habib Ltd, said the PSX witnessed another “negative Monday” as the index opened in the red and remained under pressure throughout the session amid heightened geopolitical tensions, with the US and Iran exchanging aggressive statements regarding a potential blockade of Hormuz.
On the corporate front, Sazgar Engineering Works Ltd reported a record 3QFY26 profit-after-tax (PAT) of Rs6,438 million (earnings per share of Rs106.5), up 3pc year-on-year, with 9MFY26 earnings rising 16pc to Rs14,879m (EPS: Rs246.2). Meanwhile, Engro Fertilisers Ltd announced 1QCY26 EPS of 2.49 (above expectations) and a dividend per share of Rs2.
The potential second round of US-Iran talks in Islamabad, scheduled for Tuesday, as per media reports, remains a key catalyst for market direction. Sentiment is likely to remain broadly supportive but highly sensitive to headlines, with incremental developments expected to drive near-term momentum and investor positioning.
Published in Dawn, April 21st, 2026
