The equity market remained under pressure on Monday as higher international crude prices, global yield pressures and inflation concerns kept investors cautious, while Pakistan’s fiscal-tightening commitments under its International Monetary Fund (IMF) programme added to the negative sentiment.
The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index settled at 161,613.51 points, down 3,791.05 points, or 2.29%, from the previous close of 165,596.07.
The index traded between an intraday high of 164,939.08, down 656.99 points, or 0.40%, and a low of 162,971.16, reflecting a fall of 3,982.56 points, or 2.40%.
“The market remained under pressure amid rising international crude oil prices and higher T-bill yields in developed economies, compressing risk premiums across global risk assets, and heightened inflationary concerns as the US-Iran conflict continues to drag on,” said Huzaifa Riaz, Director at Mayari Securities (Pvt) Limited.
“On the domestic front, investor caution also stemmed from Pakistan’s commitments to the IMF regarding revenue adjustments and fiscal tightening measures,” he added.
Asian equities also lost ground, extending a broader global pullback as the Middle East impasse pushed oil prices higher and lifted global government yields. Tokyo closed 1% lower and Shanghai slipped 0.1%, while Hong Kong fell 1.3%. Sydney, Taipei, Singapore and Wellington also declined, and Jakarta tumbled 3.8%, though Seoul ended 0.3% higher.
On the domestic macroeconomic front, weekly inflation measured by the Sensitive Price Indicator (SPI) rose 0.47% in the week ended May 14, climbing to 358.71 points from 357.04, while year-on-year SPI inflation stood at 14.52%, the Pakistan Bureau of Statistics (PBS) reported.
Investor sentiment also remained affected by Pakistan’s engagement with the IMF after the country received a $1.3 billion disbursement under the Extended Fund Facility (EFF) and the Resilience and Sustainability Facility (RSF) following completion of the third review programme.
Finance Minister Muhammad Aurangzeb is also continuing budget discussions with a visiting IMF mission ahead of the FY27 budget.
In the previous session on Friday, the KSE-100 Index closed at 165,596.07, down 902.76 points, or 0.54%, from 166,498.84, after trading between 166,924.48 and 165,291.53. For the week, the benchmark lost 5,520 points, or 3.23%, on a week-on-week basis.
