PSX falls 2,320 points as geopolitical jitters weigh

KSE-100 closes at 175,802 points amid US-Iran tensions, which trigger risk aversion

KARACHI:

The KSE-100 index closed at 175,802 points on Friday, down 2,320 points, as investors adopted a risk-averse stance amid escalating United States-Iran geopolitical tensions and ahead of the upcoming corporate earnings season.

The benchmark index closed at 175,802 points, down 2,320 points (-1.3%) on a day-on-day basis, as investors remained risk-averse amid heightened geopolitical uncertainty and ahead of the upcoming corporate earnings season, noted Ahmed Sheraz of KASB KTrade. The weakness was in line with the cautious tone seen across global markets, with US equities closing lower overnight, while Asian and European markets also traded under pressure.

Investor sentiment remained subdued as escalating tensions between the US and Iran kept crude oil prices elevated, raising concerns over inflationary pressures and potential disruptions to global energy supplies.

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With Friday's session prompting investors to trim positions ahead of the weekend, selling pressure remained broad-based throughout the day.

Trading activity softened, with KSE-100 volumes declining to 267 million shares from the previous session. The most actively traded stocks were Synergy, K-Electric (KEL), LOTCHEM, and Bank of Punjab (BOP), with selling concentrated in commercial banks, oil & gas, cement, investment banking, technology, and power sectors.

On the stock-specific front, Engro Holdings (ENGROH), Systems Limited (SYS), United Bank Limited (UBL), and Oil & Gas Development Company (OGDC) were the largest drags on the benchmark index.

Going forward, investors are expected to closely monitor developments in the Middle East, the direction of international oil prices, and the upcoming result season, all of which are likely to shape market sentiment in the near term.