PSX drops over 2,800 points as market sentiment weakens

The Pakistan Stock Exchange (PSX) witnessed a sharp reversal in sentiment on Friday, as the benchmark KSE-100 index fell by more than 2,800 points during intraday trading, ending a four-session gaining streak.

Earlier in the day, the market opened on a positive note and briefly continued its upward momentum. At around 10:14am, the KSE-100 index touched an intraday high of 182,185.87 points, supported by investor optimism following easing global oil prices and expectations of improved geopolitical stability after the reported “Islamabad MoU” between the United States and Iran.

However, the sentiment shifted sharply after mid-morning. From around 10:30am onward, the index began to decline almost continuously, reflecting renewed uncertainty in global and regional markets.

By 12:03pm, the KSE-100 had dropped by 2,858.75 points, or 1.58 per cent, to reach 178,539.46 points compared to the previous close of 181,398.21.

Market analysts linked the downturn to growing concerns over delays in diplomatic developments, including the postponement of planned US-Iran talks in Geneva, which investors had viewed as a key pillar of the broader peace framework.

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Some market participants also pointed to renewed geopolitical tensions following reports of strikes in the Middle East, which weighed heavily on investor confidence and triggered profit-taking across multiple sectors.

According to research experts, the initial rally had been driven largely by expectations of stability in global energy prices and improved macroeconomic signals. However, the lack of clarity regarding diplomatic progress led to volatility and a cautious shift in trading behaviour.

The sudden reversal highlights the PSX’s sensitivity to international developments, particularly those involving oil prices and geopolitical risk, which continue to play a major role in shaping investor sentiment.

Despite the decline, analysts suggest that long-term market direction will depend on sustained policy stability, inflation trends, and further clarity on global diplomatic negotiations.