Persistent escalation in the war between Iran and Israel, with no sign of de-escalation, triggered a 1.2% decline in the Pakistan stock market on Thursday.
The Pakistan Stock Exchange's (PSX) benchmark KSE-100 index shed 1,505 points, or 1.23%, to close at 120,465.
An analyst at Al-Habib Capital Markets said the market extended its previous day’s slump, weighed down by intensifying geopolitical tensions and volatile international oil prices. Meanwhile, government borrowing surged by PKR 138 billion during the week, he added.
An analyst at Ismail Iqbal Securities noted that the benchmark index closed in negative territory after a volatile session, with sustained geopolitical concerns and erratic oil prices undermining investor confidence and applying pressure on the broader market.
An analyst from Pearl Securities said the KSE-100 came under notable selling pressure during the session, accompanied by reduced trading volume. He attributed the downturn to growing risk aversion amid deepening Middle East tensions.
“Investor sentiment weakened further following U.S. President Trump’s call for Iran’s ‘unconditional surrender’, raising fears of deeper American military involvement,” he said.
Another analyst highlighted that the recent rise in global oil prices has become a major concern. "Already on June 15, the government hiked petroleum product prices. If this trend continues, further increases could accelerate inflation and erode the profit margins of listed companies," he added.
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