The benchmark KSE-100 Index at the Pakistan Stock Exchange (PSX) closed at 170,600.20 points, shedding 3,362.61 points, or 1.93%, from the previous session’s close of 173,962.81.
During the trading session, the index reached an intraday high of 174,171.64 points, up 208.83 points, before reversing course and touching a low of 170,396.85 points, representing a decline of 3,565.96 points.
Independent investment and economic analyst AAH Soomro said market direction remains unclear due to ongoing fluctuations surrounding negotiations between the United States and Iran.
“The market is choppy due to constant swings in the US-Iran deal. We need to hear tangible announcements of the deal in the next few days for the market to pick a direction,” he said.
He added that uncertainty surrounding the federal budget is also contributing to investor caution.
Internationally, European markets also slipped as hopes for a quick resolution to Middle East tensions faded.
Iran’s chief negotiator recently stated that Tehran would not agree to any deal unless the rights of the Iranian people were fully protected, while reports suggested US President Donald Trump had returned a revised proposal containing tougher conditions.
The developments have raised concerns that negotiations could face further delays, prolonging uncertainty over the reopening of the Strait of Hormuz, a critical global energy route through which roughly one-fifth of the world s crude oil passes during normal conditions.
Key disagreements reportedly remain over Iran’s nuclear programme, sanctions relief and future arrangements regarding shipping through the strategic waterway.
The uncertainty has supported higher oil prices and kept global markets sensitive to developments in the region.
Domestically, investors are also awaiting details of the federal budget, particularly taxation and fiscal measures that could affect corporate earnings and economic activity.
On the external front, Pakistan’s total liquid foreign exchange reserves increased by $58 million to reach $22.646 billion.
However, reserves held by commercial banks declined by $8 million, falling to $5.499 billion.
Pakistan’s reserves have been supported in recent months by inflows including $1.3 billion received from the International Monetary Fund under the Extended Fund Facility and Resilience and Sustainability Facility, as well as $250 million raised through panda bonds.
Despite Monday’s decline, the market had ended the previous week on a strong note.
On Friday, the KSE-100 Index gained 2,237.52 points, or 1.3%, closing at 173,962.82.
The benchmark index rose 6,119 points during the holiday-shortened week, representing a weekly gain of 4.0%, while data from Topline Securities showed the market advanced 6.7% on a month-on-month basis.
