The Pakistan Stock Exchange (PSX) witnessed a significant downturn on Friday as the KSE-100 index plunged nearly 2,000 points over rising geopolitical tensions following Israeli military strikes on Iran.
The broad-based sell-off reflected heightened investor anxiety as fears of regional escalation dampened sentiment across global and local markets. Heavyweight sectors such as fertiliser, cement, banking and technology suffered steep losses with blue chips bearing the brunt. Market participants shifted to a risk-off mode, offloading positions in response to the global uncertainty and Pakistani rupee weakness.
Arif Habib Corp MD Ahsan Mehanti observed that stocks fell across the board after Israeli strikes on Iran and as investors eyed an escalation in the conflict. Additionally, a slump in global equities on geopolitical risks and the weakening rupee also contributed to panic selling, he said.
At the end of trading, the benchmark KSE-100 index recorded a substantial fall of 1,949.56 points, or 1.57%, and settled at 122,143.57.
Topline Securities wrote in its review that stocks largely traded in the negative zone, which was in line with international and regional trends, following Israel's attack on Iran.
Top negative contribution to the index came from fertiliser, cement, bank and oil stocks. In terms of traded value, DG Khan Cement ($6.4 million), Maple Leaf Cement ($5.92 million), Lucky Cement ($4 million), OGDC ($3.72 million), Pakistan State Oil ($3.65 million) and Mari Petroleum ($3.15 million) dominated trading activity, Topline said.
KTrade Securities stated that the KSE-100 index ended the session in the negative territory, pressured by escalating geopolitical tensions in the region, particularly between Iran and Israel.
Despite that, market activity remained robust, with trading volumes exceeding 966 million shares. Sideboard stocks were the most actively traded, which included Pervez Ahmed Consultancy (116 million shares), WorldCall Telecom (100 million) and First Capital Securities (85 million).
Notable declines were recorded in Engro Corporation, Lucky Cement, Fauji Fertiliser, Bank AL Habib and Systems Limited. In light of prevailing regional uncertainties, KTrade advised investors to maintain a cautious approach in the near term.
Arif Habib Limited (AHL) Deputy Head of Trading Ali Najib mentioned that the market witnessed a sharp correction as it reacted to heightened geopolitical tensions following Israeli strikes on military and nuclear facilities inside Iran.
The benchmark index opened in the red and quickly extended losses, hitting the intra-day low of 121,605 points, down 2,489 points, amid broad-based selling pressure. Heavyweight blue-chip stocks in fertiliser, cement, banking and technology sectors bore the brunt of the sell-off, Najib added.
According to JS Global analyst Mubashir Anis Naviwala, the market opened on a negative note in line with regional equities and it experienced a highly volatile session. Sentiment received a blow from escalating tensions between Iran and Israel, fuelling investor caution.
The index touched the low of 121,605 and closed at 122,144, down 1,950 points. Volatility persisted throughout the day amid uncertain global cues. He advised investors to adopt a cautious stance and avoid aggressive positions in the near term with focus on risk management and tracking geopolitical developments.
Overall trading volumes decreased to 968.3 million shares compared with Thursday's tally of 1.02 billion. The value of shares traded was Rs29.6 billion. Shares of 469 companies were traded. Of these, 130 stocks closed higher, 304 fell and 35 remained unchanged.
Pervez Ahmed Consultancy was the volume leader with trading in 116.7 million shares, rising Rs1 to close at Rs2.93. It was followed by WorldCall Telecom with 100.9 million shares, gaining Rs0.08 to close at Rs1.45 and First Capital Securities with 85.3 million shares, higher by Rs0.94 to close at Rs3.06. Foreign investors bought shares worth Rs179 million, the National Clearing Company reported.
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