KARACHI: A strong start at the Pakistan Stock Exchange (PSX) on Monday lost momentum after reports of tensions in the Strait of Hormuz unsettled investors, but the benchmark KSE-100 index still closed higher.
According to Topline Securities Ltd, the market opened firmly, supported by easing oil prices, with the index surging as much as 4,251 points intraday. However, sentiment weakened later in the session amid reports of a missile strike near the Strait of Hormuz, prompting profit-taking.
Despite the volatility, the KSE-100 index closed at 163,948.94, up 954.77 points, or 0.59 per cent, reflecting cautious optimism. Index heavyweights, including Fauji Fertiliser Company, United Bank Ltd, MCB Bank, Oil and Gas Development Company, and Hub Power Company, led the gains, collectively adding 543 points. Meezan Bank, Maple Leaf Cement, Pakistan Oilfields, Attock Refinery and Kohat Cement wiped out 194 points.
Market participation remained subdued, with the total trading volume falling 16.79pc to 696 million shares and the traded value dipping 3.9pc to Rs34.9 billion. Hascol Petroleum topped the volumes chart, with 51 million shares traded.
Ali Najib, Deputy Head of Trading at Arif Habib Ltd, said the market opened higher, supported by improving investor sentiment amid expectations of stability in global energy routes and developments in Iran-US relations.
On the corporate front, Sitara Petroleum’s book-building exercise was fully subscribed within eight minutes at the cap price of Rs18.90, marking one of the fastest subscriptions on the PSX.
However, sentiment turned volatile towards the close after Iran’s Fars News Agency reported that missiles had been fired at a US warship in the Strait of Hormuz. The news triggered a sell-off in global equities, a rise in the US dollar index, and a roughly 4pc increase in oil prices. Later reports denying the incident helped limit losses.
Analysts said elevated oil prices and geopolitical uncertainty may keep near-term sentiment cautious, with 160,000 seen as strong support and 175,000 achievable if tensions ease.
Published in Dawn, May 5th, 2026
