Key Points
- Benchmark KSE-100 index down 1.26 per cent by midday
- Investor caution linked to geopolitical uncertainty over Iran-US deadlock
- Index hovers near 167,000 level after previous sharp losses
- Volatility persists following recent declines
ISLAMABAD: Pakistan’s equity market opened on a negative note on Friday, with the benchmark KSE-100 index dropping more than one per cent amid persistent investor caution linked to geopolitical tensions.
Data from the Pakistan Stock Exchange showed the KSE-100 index standing near 167,161 points in early trading, down 2,011 points or 1.26 per cent from the previous close, extending the declining trend seen in the last session.
The losses follow a steep fall on the previous trading day, when the market shed over 2,400 points or nearly 2 per cent in response to heightened uncertainty over global and regional developments.
Market participants cited a cautious approach among investors, with many reducing exposure to equities due to concerns over tensions in the Middle East and uncertainty surrounding ongoing diplomatic engagements between major powers.
In financial markets, a “risk-off” environment refers to a shift by investors away from equities and other high-risk assets toward safer options such as cash or government securities, often triggered by geopolitical instability or economic uncertainty.
Selling remained visible across key sectors, including banking, energy and cement, indicating a across-the-board decline in the market rather than isolated stock-specific pressure.
The benchmark index has retreated from recent highs, with volatility rising in recent sessions amid continued uncertainty.
Analysts said near-term market direction would depend on geopolitical developments and movement in global oil prices, both critical factors for Pakistan’s economic outlook.
