Overview
- The Pakistan Stock Exchange benchmark dropped roughly 720–721 points to about 176,975 on Monday after reports that U.S. forces struck Iranian launchers on Larak island and Iran responded.
- Brent futures moved toward $90–$91 per barrel, which lifted trading activity to about 937 million shares and pushed the value of trades to roughly Rs39 billion.
- Selling was concentrated in major banks, cement and auto names with United Bank, Systems Ltd, Habib Bank, Lucky Cement and Pakistan Petroleum the top negative contributors that together shaved the index by about 755 points.
- Foreign investors were net sellers of about Rs1.05 billion and refineries outperformed as investors shifted into firms likely to benefit from higher oil prices.
- Because Pakistan imports most of its fuel, higher crude could raise the import bill and inflation and put further pressure on the rupee, while upcoming U.S. economic data could alter global rate expectations and market sentiment.