The Pakistan Stock Exchange (PSX) took a major hit on Friday as rising tensions between Israel and Iran rattled global markets. The benchmark KSE-100 index dropped by 1,949.56 points, closing at 122,143.56. This marks a 1.57% decline, making it one of the sharpest falls in recent weeks. Investors reacted strongly to geopolitical uncertainty.
Earlier in the day, the index touched a high of 123,058.06 points but soon reversed direction. It dipped to a low of 121,604.59 points before the session closed. Trading volume remained high, with over 238 million shares traded. The total value of trades crossed Rs19.7 billion, showing high market activity despite the decline.
The sharp drop followed Israel’s sudden air strikes on Iran, which targeted nuclear facilities and top military officials. This aggressive move, despite Iran’s claims of peaceful nuclear goals, sparked fears of regional war. Israel’s state of emergency declaration added to market panic, causing global equities to slump as well.
Ahsan Mehanti of Arif Habib Corp said post-budget profit-taking and fears over a broader conflict drove stocks lower. Falling oil prices, weak exports, and a sliding rupee also played roles. JS Global’s Mubashir Naviwala noted the index had hit a record high of 126,718 earlier in the week, but investor caution took over.
Analysts now urge investors to look for key support levels and buy during dips. They suggest focusing on sectors like cement, banking, and fertilisers for short-term gains. However, until tensions ease, market volatility is likely to continue.