KSE-100 Drops 1.57% as Israel-Iran Conflict Weighs on Sentiment
The Pakistan Stock Exchange (PSX) ended the week on a bearish note, with the benchmark KSE-100 index plunging 1,949.56 points, or 1.57%, to close at 122,143.56 on Friday. The sharp decline was driven by mounting geopolitical tensions following Israel’s military strike on Iran earlier in the day.
During the session, the index reached an intraday high of 123,058.06 and a low of 121,604.59. Total traded volume was recorded at 238.2 million shares, with a market turnover of Rs19.7 billion. The previous session had closed at 124,093.12.
The market rout came after Israel launched targeted strikes on Iranian nuclear sites and key military personnel, claiming it was a preventive measure against Tehran’s alleged atomic ambitions. Iran, which has long maintained that its nuclear programme is peaceful, lost several nuclear scientists and high-ranking military officials in the assault.
Anticipating Iranian retaliation, Israel declared a state of emergency, heightening concerns of a broader regional conflict. The geopolitical shockwave reverberated across global markets, with equities retreating and investor sentiment turning risk-averse.
The PSX had already shown signs of volatility on Thursday, when the KSE-100 index briefly hit a record intraday high of 126,718 points before ending the session down 259.56 points (0.21%) at 124,093.12. That session had initially benefited from positive sentiment around the federal budget, strong remittance inflows, and monetary policy expectations, but gains faded amid regional uncertainty and profit-taking.
Arif Habib Corp Managing Director Ahsan Mehanti attributed the downturn to “heightened geopolitical risk, post-budget profit-taking in overbought stocks, and a broader slump in global equities driven by Middle East tensions.” He also cited falling international oil prices and a weakening rupee amid declining exports as contributing factors.
JS Global analyst Mubashir Anis Naviwala noted that the KSE-100’s recent peak was followed by a wave of profit-taking, pushing the market lower. He advised investors to monitor key support levels and look for buying opportunities in select sectors such as fertiliser, cement, and banking.
The PSX’s ongoing volatility underscores investor unease in the face of escalating global tensions and uncertain economic signals.
