Stocks extend losses on cautious trading

Dawn Business

Stocks extend losses on cautious trading

KARACHI: The Pakistan Stock Exchange (PSX) extended losses on Monday amid rising geopolitical tensions over the weekend, which soured hopes for a quick resolution to the ongoing Middle East conflict as clashes between Iran and Israel tested the fragile truce. Additionally, uncertainty surrounding the budget further dampened investor sentiment, causing the benchmark KSE-100 index to fall below the 170,000 mark. Topline Securities Ltd said the PSX witnessed a choppy session, mirroring weakness across international equity markets as escalating geopolitical tensions dampened investor sentiment. The benchmark index remained under pressure throughout the session, plunging to an intraday low of 2,046 points before settling at 168,953, down 1,525 points or 0.89 per cent. The negative momentum largely tracked global market trends amid heightened geopolitical uncertainty, driven by ceasefire violations and renewed attacks, which reignited concerns across financial markets and kept investor risk appetite subdued. On the index contribution front, heavyweight stocks remained under pressure, with United Bank, Engro Holdings, Fauji Fertiliser, Habib Bank, Hub Power and Pakistan Petroleum collectively eroding approximately 561 points from the benchmark index. Investor participation declined compared to the previous session as the total traded volume dipped 9.51pc to 658 million shares and the traded value decreased 15.54pc to Rs22.5 billion. TPL Properties emerged as the volume leader, with 60 million shares changing hands. Ali Najib, Deputy Head of Trading at Arif Habib Ltd (AHL), said the PSX recorded another negative Monday, with the KSE-100 index falling below the key psychological 170,000 level for the first time since May 22. Notably, this marks the 15th negative Monday in the last 17, highlighting the persistent impact of geopolitical uncertainty (emerging over the preceding weekends) on investor sentiment since February 9. Market sentiment remained subdued throughout the session as renewed exchanges of attacks between Iran and Israel dampened hopes of a near-term peace agreement, prompting investors to adopt a cautious stance. On the corporate front, Sazgar Engineering’s four-wheeler sales rose 75pc year-on-year to 1,604 units in May, while three-wheeler sales fell 12pc year-on-year to 1,636 units. For 11MFY26, four-wheeler sales surged 73pc year-on-year to 16,459 units, while three-wheeler sales edged up 1pc YoY to 23,578 units. Published in Dawn, June 9th, 2026

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