Market Plunge at PSX Amid Geopolitical Tensions

The Pakistan Stock Exchange (PSX) experienced significant selling pressure as the benchmark KSE-100 Index plummeted nearly 2,500 points in early trading on Friday. This downturn occurred amidst escalating geopolitical concerns following a reported military action by Israel within Iran.

As of 9:50 am, the KSE-100 Index was recorded at 122,533.32, reflecting a decrease of 1,559.80 points, equivalent to a 1.26% drop.

Widespread selling was evident across multiple sectors, including automobile manufacturing, cement, commercial banking, oil and gas exploration, oil marketing companies (OMCs), power generation, and refineries. Major stocks such as OGDC, PPL, PSO, MARI, and HUBCO all showed negative movement.

The PSX had previously undergone a slight correction on Thursday, retracting after a robust rally earlier in the week, which was fueled by investor optimism surrounding the federal budget. The KSE-100 Index decreased by 259.56 points, or 0.21%, to close at 124,093.12 points.

Global Market Overview

Global stock markets witnessed a decline in early Asian trading hours on Friday. This was triggered by a selloff in U.S. futures, coupled with a surge in oil prices after the Israeli military operation in Iran. Consequently, investors shifted towards safe-haven assets such as gold and the Swiss franc.

The Israeli action has amplified the potential for increased instability in the Middle East, a crucial oil-producing region. This development coincides with existing pressures on the global economy and financial markets stemming from adjustments to trade policies.

The market responded quickly, with U.S. S&P E-mini futures dropping by 1.5% as of 0055 GMT, and Nasdaq futures falling by 1.7%.

Japan’s Nikkei index decreased by 1.4%, while South Korea’s KOSPI experienced a 1.2% decline.

Brent crude prices rose by over 6% to reach $73.56 per barrel, and gold prices increased by 1% to approximately $3,419 per ounce.

Reports indicated that Israel had declared a state of alert in anticipation of potential missile and drone attacks from Tehran, following what it described as a preemptive measure related to Iran’s nuclear program.

Explosions were reported in areas northeast of Tehran, according to state-run media sources early Friday.

Unnamed U.S. officials confirmed that Israel had initiated strikes within Iran, emphasizing that the U.S. provided no assistance or involvement in the operation.

This information constitutes an intra-day market update.