Pakistan Stock Exchange Drops Below 180,000 as Geopolitical Tensions Heighten

KARACHI — The cancellation of the latest round of US‑Iran talks in Switzerland and continued Israeli strikes in Lebanon spurred profit‑taking across the market, as investors grew uneasy about a lasting peace in the Middle East. Consequently, the Pakistan Stock Exchange (PSX) experienced a volatile session on Friday, pushing the KSE‑100 index below 180,000.

Topline Securities Ltd reported that the index moved in a narrow range in the early session. Selling pressure intensified in the latter half of trading after news that US‑Iran negotiations were postponed and Israel escalated its attacks in southern Lebanon, heightening concerns about regional stability.

The biggest drags on the index were United Bank, Fauji Fertiliser, Engro Holdings, Pakistan Petroleum, Oil and Gas Development Company, Lucky Cement, Habib Bank and Systems Ltd, collectively shaving 1,273 points from the benchmark.

Ali Najib, Deputy Head of Trading at Arif Habib Ltd, noted that the market saw aggressive profit‑taking, with the index dropping 2,475.46 points, or 1.36%, to close at 178,923. Investor sentiment stayed cautious as participants locked in gains, especially in blue‑chip cyclical stocks, ahead of the weekend.

On the macro front, the Sensitive Price Index (SPI) for the week ending June 18 rose 15.28% year‑on‑year and 0.46% week‑on‑week.

Investor participation eased on the previous day, with trading volume slipping 15.43% to 1.03 billion shares and traded value falling 6.68% to Rs53.8 billion. SSGC topped the volume chart with 87.3 million shares traded.

Analysts expect short‑term volatility as investors monitor Middle‑East geopolitical tensions. Nonetheless, improving macroeconomic fundamentals, a stable interest‑rate outlook, and anticipated declines in energy prices continue to support the broader market trend.

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