The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) suffered a sharp decline of over 2,800 points during intraday trading, snapping a four-session winning streak.
Prior to this downturn, the market had experienced a period of growth driven by buying interest across several sectors, fueled by optimism surrounding falling oil prices and the signing of the ‘Islamabad MoU’ between the United States and Iran.
On Friday, the KSE-100 initially showed strength, reaching an intraday peak of 182,185.87 points by 10:14 am. However, this momentum reversed sharply after 10:30 am, leading to a steady decline.
By 12:03 pm, the KSE-100 index had dropped 2,858.75 points (1.58 per cent), falling to 178,539.46 from its previous closing mark of 181,398.21.
The sell-off was triggered by the postponement of scheduled US-Iran talks in Geneva, which were regarded as a critical component of the peace framework established under the Islamabad MoU.
Awais Ashraf, director of research at AKD Securities, stated that the cancellation of these technical discussions between the US and Iranian delegations has significantly shaken investor confidence.
This sudden slump contradicts earlier analyst predictions, which had suggested the market would maintain its upward trajectory based on stabilizing monetary policies and easing geopolitical tensions.
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