KARACHI – The Pakistan Stock Exchange (PSX) began the trading week in negative territory on Monday, as escalating geopolitical tensions with India weighed heavily on investor sentiment. The benchmark KSE-100 Index dropped 890 points, reflecting growing uncertainty over regional security and upcoming economic policy decisions.
By 9:40am, the KSE-100 had fallen to 113,223.46, a decline of 0.78%. The early losses extended last week’s bearish momentum, when the index shed over 1,350 points, closing at 114,114 on Friday.
Investor nerves were rattled by reports suggesting possible Indian airstrikes, following a high-level meeting on Sunday between Indian Prime Minister Narendra Modi and Air Chief Marshal VR Chaudhari. The meeting came in response to a recent militant attack in Pahalgam, located in Indian-administered Jammu and Kashmir.
Concerns over potential military escalation dragged key sectors lower. Heavyweight stocks such as Hub Power Company (HUBCO), Pakistan State Oil (PSO), Sui Northern Gas (SNGPL), Mari Petroleum (MARI), OGDC, PPL, Meezan Bank (MEBL), National Bank (NBP), and United Bank (UBL) all traded in the red.
Adding to investor caution was anticipation surrounding the Monetary Policy Committee (MPC) meeting later in the day. The State Bank of Pakistan is expected to announce its decision on the policy rate, a key determinant for market direction.
“The market is being pulled in two directions — geopolitical tension and uncertainty about interest rates,” said a trader at a Karachi-based brokerage. “Until there’s clarity on both fronts, we expect investors to remain on the sidelines.”
In contrast, Indian markets continued to rise. The Nifty 50 gained 0.59% to 24,487.14, while the BSE Sensex rose 0.54% to 80,936.40 as of 10:03am IST.
Indian equities are enjoying their longest weekly winning streak of the year, fueled by consistent foreign inflows, easing global trade concerns, and falling oil prices. Foreign portfolio investors (FPIs) have been net buyers for 12 consecutive sessions, the longest streak in two years.
Still, analysts cautioned that Indian markets may face headwinds from subdued March-quarter earnings and the growing regional volatility stemming from India-Pakistan tensions.
