Investor Sentiment Weakens as Geopolitical Tensions Rise

The Pakistan Stock Exchange (PSX) faced renewed pressure as escalating US-Iran tensions rattled investor confidence, triggering a sharp decline in the benchmark KSE-100 Index. The market’s volatility was further amplified by the start of the roll-over period, which traditionally adds uncertainty to trading sessions.

During the day, the KSE-100 Index swung dramatically between highs and lows. It touched an intraday peak of 174,336 points, gaining over 1,100 points, but quickly reversed course to hit a low of 169,071 points, shedding more than 4,000 points. This fluctuation reflected the fragile risk appetite among investors who remained cautious about global geopolitical developments.

Market analysts noted that the combination of external tensions and domestic financial pressures has created a challenging environment for traders. The uncertainty surrounding regional conflicts has made investors wary of taking long positions, while short-term volatility continues to dominate the trading floor.

Experts believe that unless clarity emerges on the geopolitical front, the PSX is likely to remain choppy in the near term. Investors are being advised to adopt a cautious approach, focusing on defensive sectors and minimizing exposure to high-risk assets.

The latest slide underscores how external shocks can quickly ripple through Pakistan’s financial markets, highlighting the need for resilience and strategic planning to safeguard investor confidence.