The PSX benchmark KSE-100 index plunged over 2,800 points during Friday’s trading session, marking a sharp reversal following the postponement of high-profile US-Iran diplomatic discussions. The decline abruptly halted a four-day upward trend in the market.
ISLAMABAD: The Pakistan Stock Exchange faced intense selling activity on Friday, with the KSE-100 index dropping more than 2,800 points intraday after uncertainty surrounded planned negotiations between the United States and Iran. The index opened positively, reaching an intraday peak of 182,185.87 points by 10:14am, but reversed course shortly after 10:30am. By 12:03pm, it had fallen 2,858.75 points, or 1.58%, to 178,539.46, compared to the prior close of 181,398.21.
The downturn ended a four-session recovery driven by declining oil prices and renewed investor optimism after the signing of the US-Iran memorandum of understanding, which had spurred sectoral gains. However, Friday’s slump followed the delay of a critical US-Iran meeting in Geneva, undermining confidence in the peace process.
Awais Ashraf, director of research at AKD Securities, attributed the market’s volatility to escalating regional tensions. He noted that Israeli airstrikes on Lebanon, occurring after the US-Iran agreement, had destabilized investor sentiment. “Developments in Lebanon have shaken confidence despite earlier optimism,” he said.
The market’s pullback defied prior analyst expectations, which had projected sustained momentum amid easing geopolitical strife and a stable monetary policy backdrop.
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