The Pakistan Stock Exchange (PSX) saw a massive sell-off on Friday as rising tensions between Iran and Israel rattled investors. The KSE-100 index dropped by 1,949.55 points or 1.57%, closing at 122,143.57. The market opened in the red and quickly extended losses due to geopolitical uncertainty.
The fall came after Israeli strikes hit Iranian military and nuclear sites, causing major human and material losses. In response, Iran vowed strong retaliation, sparking fears of broader regional conflict. These developments created panic in regional and global markets, impacting sentiment at the PSX.
Blue-chip stocks across fertiliser, banking, cement, technology, and energy sectors faced the worst pressure. Major losers included Engro Holdings, Fauji Fertiliser, Lucky Cement, Meezan Bank, Systems Ltd, and Pakistan Petroleum. These stocks collectively pulled the index down by over 860 points.
Trading volume also fell, reflecting weak investor confidence. Volumes dropped by 5.49% to 968.34 million shares, while traded value plunged by over 41% to Rs29.55 billion. Analysts noted that the market moved in line with global markets, which also reacted negatively to the conflict.
Market watchers warn that if the Middle East conflict escalates, Pakistani markets could face continued volatility. For now, investors are expected to remain cautious until some form of diplomatic clarity or de-escalation appears.