The Pakistan Stock Exchange (PSX) witnessed a sharp decline on Friday as uncertainty surrounding potential peace talks between the United States and Iran sparked widespread selling across major sectors.
The benchmark KSE-100 Index closed at 178,922.75 points, down 2,475.46 points, or 1.36 percent, from the previous session.
The market began the day on a positive note, with the index climbing more than 700 points during early trading to reach 182,185.87 points. However, investor sentiment turned negative after reports emerged that planned talks between U.S. and Iranian negotiators in Switzerland had been called off, raising concerns about regional stability and the prospects for a lasting ceasefire in the Middle East.
Selling pressure intensified throughout the session, pushing the KSE-100 to an intraday low of 177,836.16 points, representing a decline of more than 3,560 points from its peak.
Major sectors that came under pressure included automobile assemblers, auto parts manufacturers, cement, chemicals, commercial banks, food and personal care products, oil and gas exploration companies, oil marketing firms, power generation companies, and refineries.
The decline follows Thursday’s strong rally when the market gained nearly 900 points on optimism surrounding a potential diplomatic breakthrough between the United States and Iran and easing international oil prices.
Global markets also weakened after reports indicated that U.S. Vice President JD Vance had cancelled travel plans related to the proposed negotiations. Investors viewed the development as a setback to efforts aimed at reducing tensions in the region.
Meanwhile, oil prices remained volatile. Brent crude hovered near $79.78 per barrel, while U.S. West Texas Intermediate (WTI) crude traded around $77.59 per barrel, as traders assessed the impact of stalled diplomatic efforts and renewed geopolitical risks in the Middle East.
Market analysts said investor sentiment on the PSX remains highly sensitive to global geopolitical developments, particularly those affecting energy markets, as Pakistan’s economy and stock market are closely linked to international oil price movements.
