KSE-100 Surges 670-Point Drop as Geopolitical Tensions and Rate Hedge Weigh Down Markets

The benchmark KSE-100 Index closed at 166,419 points, down from 167,089 at the end of the previous week.
KARACHI: The Pakistan Stock Exchange (PSX) recorded a decline of 670 points during the business week, as geopolitical tensions between the United States and Iran and concerns over a possible interest rate hike weighed on market sentiment.
The benchmark KSE-100 Index closed at 166,419 points, down from 167,089 at the end of the previous week.
During the five trading sessions, the index reached a high of 166,988 points and a low of 164,060 points, reflecting shifts in investor mood amid uncertainty over geopolitical developments and the interest rate outlook.
Market activity remained subdued as investors assessed the potential effect of regional friction and higher borrowing costs on economic and corporate outlooks.
The market’s total capitalization fell by Rs 89 billion during the week to Rs 18.479 trillion, indicating a broader decline in the overall valuation of listed firms.
Earlier, the benchmark KSE-100 Index fell 1,066 points, or 0.69%, during the outgoing business week amid global political uncertainty and investor worries regarding rising oil prices and a widening trade deficit.
The index closed at 167,089 points, trailing 168,155 by the end of the prior week, breaching a key support level over the conference sessions.
During the week, the benchmark indexed peaked at 169,271 points and tabled near 165,651 points.
The aggregate capitalization declined further, sinking by Rs 156 billion across the five sessions to Rs 18,569 billion.
Investor confidence stayed elevated risk‑adjusted through persistent concerns about elevated international oil costs and the likelihood of additional currency outflows, reinforced by ongoing global political unease.”}]

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