KARACHI: The imposition of governor`s rule and an emergency in PTIruled Khyber Pakhtunkhwa further weakened already fragile investor sentiment on Monday. The Pakistan Stock Exchange (PSX) remained under pressure from Middle East tensions, elevated oil and petroleum prices, inflationary pressures and political instability, all contributing to continued economic uncertainty.

As a result, the market remained under unrelenting selling pressure, dragging the benchmark KSE100 index below the 166,000 level.

Despite a staff-level agreement with the International Monetary Fund that paved the way for the release of $1.2 billion under the two ongoing programmes, subject to executive board approval, it failed to sup-port the market in recent days.

Oil prices rose to near two-week highs as attacks on Saudi Arabia overshadowed the possibility of further supplies to the market. Brent crude futures rose $2.07, or 2pe, to $106.79, their highest since Sept 29. US West Texas Intermediate crude was at $93.54 a barrel, up $1.69, or 1.8pc.Topline Securities Ltd said the index came under renewed selling pressure, plunging 1,920 points intraday before closing at 165,124.41, down 1,964.87 points, or 1.18 per cent.

Bearish sentiment followed the federal government`s decision to impose an emergency in Khyber Pakhtunkhwa after President Asif Ali Zardari approved the federal cabi-net`s recommendation on Sunday. The development heightened political uncertainty, prompting investors to adopt a cautious stance amid concerns about the evolving situation.

The announcement further dampened investor sentiment, triggering broad-based selling as market participants stayed on the sidelinesamid heightened uncertainty and a lack offresh positive catalysts.

United Bank, Oil and Gas Development Company, Habib Bank, Meezan Bank, and Lucky Cement emerged as the major laggards, collectively shaving approximately 645 points off the KSE-100 Index.

Investor participation remained subdued, wellbelow the 500-millionshare level, though total trading volume rose 17.3pc to 362.95m shares over the weekend session and turnover value rose 6.02pc to Rs14.5bn. Treet Corporation led the volume chart with 27m shares.

Ali Najib, Deputy Head of Trading at Arif Habib Ltd, said the PSX re corded a bearish, volatile session as the market opened lower amid heightened domestic political uncertainty.

However, value buying at lower levels provided some support, triggering a brief recovery in the be nehmark index. Nevertheless, the rebound proved short-lived, and the market closed firmly lower.

He said the market was likely to remain volatile amid heightened domestic political uncertainty and cautious investor sentiment. Further downside pressure cannot be ruled out, although value buying at lower levels may provide intermittent support. He advised investors to remain selective, prioritise fundamentally strong stocks, and avoid aggressive positions until sentiment stabilises.