PSX opens lower as selling grips index-heavy sectors

Negative sentiments were observed at the Pakistan Stock Exchange (PSX), with the benchmark KSE-100 Index shedding over 300 points during the opening minutes of trading on Monday.

At 9:40am, the benchmark index was hovering at 183,847.01, a decrease of 327.47 points or 0.18%.

Selling pressure was observed in key sectors, including cement, commercial banks, fertiliser, oil and gas exploration companies, OMCs and power generation. Index-heavy stocks, including MARI, OGDC, POL, PPL, SSGC, FFC, HBL, MCB, MEBL and NBP, traded in the red.

In a key development, it was learnt that Pakistan International Airlines’ privatisation process is entering its next phase, with officials indicating that the government has an option to divest its remaining 25 per cent stake — valued at around Rs45 billion — within a three-month window, following the transfer of management control to a private consortium.

During the previous week, PSX remained under sustained pressure, as the benchmark KSE-100 Index retreated sharply amid disappointment over monetary policy, heightened geopolitical tensions and weaker-than-expected corporate earnings, before staging a strong rebound in the final session on easing external risks and government support measures.

The KSE-100 Index closed the week at 184,174 points, registering a week-on-week decline of 4,992 points or 2.6%.

Internationally, Asian shares mostly followed Wall Street futures into the red on Monday as chaotic trading in precious metals made for ​a nervous start to a week that is packed with corporate earnings, central bank meetings and major economic data.

Silver lost another 5% at one stage, ‌as Friday’s 30% plunge squeezed leveraged positions in what had become a very crowded trade. Dealers also said pressure on the UBS SDIC silver futures fund in China added to the rout.

Oil prices fell around 3% as President Donald Trump said over the weekend Iran was “seriously talking” with Washington, perhaps lessening the risk of a US military strike on the country.

The jitters saw MSCI’s broadest index of Asia-Pacific shares outside Japan sink 1.7%, while South Korea shed 2.2%.

Chinese blue chips were flat, with falls in gold indexes.

This is an intra-day update