KSE-100 down 1,950 points amid rising geopolitical tensions

KARACHI: The Pakistan Stock Exchange (PSX) witnessed a sharp decline in a highly volatile session on Friday, as geopolitical tensions increased with Israel’s military strikes on Iran, which affected the global markets as well.

The benchmark KSE-100 index plunged by 1,949.56 points, or 1.57 per cent, to 122,143.57 points, down from 124,093.12 points recorded in the last session. The highest index of the day remained at 123,058.06 points, while the lowest level was recorded at 121,604.6 points.

Analyst Ahsan Mehanti at Arif Habib Corp said that stocks fell broadly following Israeli strikes on Iran, as investors watched closely for signs of escalating conflict.He said that a slump in global equities due to geopolitical risks and a weakening rupee played a catalytic role in panic selling at the PSX.

The KSE-30 index decreased by 653.39 points or 1.74 per cent to 36,883.3 points from 37,536.69 points. Traded shares decreased by 56 million shares to 968.346 million shares from 1,024.633 million shares. The trading value decreased to Rs29.558 billion from Rs50.539 billion. Market capital narrowed to Rs14.747 trillion against Rs14.951 trillion. Of the 469 companies active in the session, 130 closed in green, 304 in red and 35 remained unchanged.

Nabeel Haroon, an analyst at Topline Securities, said the KSE-100 index largely traded in the negative zone during the trading session in line with international and regional markets, which came down on the Israel attack on Iran.

Top negative contributions to the index came from ENGROH, FFC, LUCK, BAHL, MEBL, SYS and PPL, as they cumulatively contributed 863 points to the indexTraded value wise DGKC ($6.4 million), MLCF ($5.92 million), LUCK ($4 million), OGDC ($3.72 million), PSO ($3.65 million) and MARI ($3.15 million) dominated the trading activity

The highest increase was recorded in Supernet Technologies Limited, which rose by Rs41.74 to Rs873.4 per share, followed by Faisal Spinning Mills Limited, which increased by Rs29.96 to Rs329.96 per share. A significant decline was noted in PIA Holding Company Limited B, which fell by Rs2,098.79 to Rs18,889.1 per share; Khyber Textile Mills Limited followed it, which closed lower by Rs199.39 to Rs1,794.55 per share.

Analyst Mubashir Anis Naviwala at JS Global said a highly volatile session was witnessed as the market opened on a negative note, in line with regional markets. “Sentiment was hit due to escalating tensions between Iran and Israel, fuelling investor caution,” he said.

Volatility persisted throughout the day amid uncertain global cues. “We advise investors to adopt a cautious stance and avoid aggressive positions in the near term,” he said. “Focus should remain on risk management and tracking geopolitical developments.”

Pervez Ahmed Co remained the volume leader with 116.655 million shares, which closed higher by Re1 to Rs2.93 per share. WorldCall Telecom, with 100.891 million shares, followed it, which closed higher by 8 paisas to Rs1.45 per share.

Other significant turnover stocks included Ist Capital Sec, PIA Holding Company, B.O. Punjab, Kohinoor Spinning, Media Times Ltd, Cnergyico PK, Prud Mod. 1st, and Sui South Gas. In the futures market, 317 companies recorded trading, 32 of which increased, 284 decreased and one remained unchanged.