The Pakistan Stock Exchange (PSX) closed marginally lower on Monday as profit-taking in key sectors outweighed the positive impact of renewed diplomatic progress between the United States and Iran. After a strong start to the session, the market surrendered most of its gains as investors opted to lock in profits following the benchmark's recent rally.

The KSE-100 Index settled at 178,471.86, declining by 450.89 points (-0.25%). The benchmark traded within a range of 2,170.68 points during the session, reaching an intraday high of 180,507.82 (+1,585.07 points) before retreating to a low of 178,337.14 (-585.61 points), reflecting increased volatility and profit-taking pressure.

Trading activity remained moderate, with total volume in KSE-100 stocks recorded at 230.11 million shares.

Investor sentiment initially improved after Qatar and Pakistan, acting as mediators, confirmed that American and Iranian officials had agreed on a framework aimed at finalizing a peace agreement within the next 60 days. The development supported risk appetite and contributed to a decline in international oil prices, helping the market open firmly in positive territory.

However, the optimism proved short-lived as investors shifted focus toward booking profits after the market's strong gains in recent weeks. Selling pressure emerged in heavyweight banking, cement, fertilizer, and technology stocks, eventually pushing the benchmark index into negative territory by the close.

Market breadth remained weak, with 61 companies closing lower, 38 advancing, and one remaining unchanged among the KSE-100 constituents.

Among the major decliners, PSX (-3.76%), ISL (-2.88%), SSOM (-2.82%), GADT (-2.73%), and NPL (-2.42%) recorded notable losses. On the positive side, SNGP (+5.15%), COLG (+3.72%), SSGC (+2.91%), PGLC (+2.88%), and MTL (+2.88%) emerged as the day's top gainers.

In terms of index-point contribution, FFC exerted the largest negative impact on the benchmark, dragging the index down by 77.48 points. Other major contributors to the decline included BAHL (-77.23 points), HBL (-70.16 points), LUCK (-60.24 points), and MCB (-41.04 points).

On the positive side, OGDC contributed 66.99 points to the index, followed by MTL (+54.94 points), SNGP (+53.40 points), COLG (+38.22 points), and HUBC (+23.13 points), partially offsetting losses in other sectors.

Sector-wise, Commercial Banks remained the largest drag on the benchmark, shaving off 287.12 points. Additional pressure came from Cement (-93.10 points), Fertilizer (-80.69 points), Technology & Communication (-47.38 points), and Investment Banks, Investment Companies & Securities Companies (-29.25 points).

Meanwhile, Oil & Gas Exploration Companies contributed 54.42 points to the index, followed by Automobile Assemblers (+32.94 points), Oil & Gas Marketing Companies (+29.25 points), Power Generation & Distribution (+20.34 points), and Food & Personal Care Products (+12.15 points), helping limit the overall decline.

In the broader market, the All-Share Index settled at 107,750.15, down 100.11 points (-0.09%). Total market volume stood at 807.47 million shares compared to 1.05 billion shares in the previous session, while traded value declined to Rs36.17 billion.

A total of 420,657 trades were reported across 491 listed companies, with 214 companies closing higher, 240 lower, and 37 remaining unchanged, indicating mixed sentiment across the wider market.

Top volume leaders included WTL (59.56 million shares), TPL (59.27 million shares), TPLP (56.04 million shares), SSGC (33.02 million shares), and GCIL (30.19 million shares).