ISLAMABAD: The Pakistan Stock Exchange (PSX) witnessed a volatile trading session on Thursday, with the benchmark KSE-100 index closing below the 120,000 mark after early gains were erased by regional tensions.
The market opened strong following approval of a Rs1.275 trillion power sector debt plan but succumbed to profit-taking as Middle East tensions spooked investors.
Early Optimism Fades Quickly
The index initially surged 1,279 points after the cabinet approved a six-year circular debt management plan.
This bullish momentum reflected investor confidence in government measures to address chronic energy sector issues.
Banking sector heavyweights including UBL and MCB provided substantial support during the morning session.
Geopolitics Trump Domestic Reforms
Market sentiment reversed sharply as reports of escalating Iran-Israel tensions dominated global headlines.
The index plunged 696 points intraday before closing at 120,002.59 – down 0.38% with broad-based selling.
Trading volumes declined 14.5% as risk-averse investors moved to sidelines amid geopolitical uncertainty.
Analysts noted the market’s vulnerability to external shocks despite positive domestic developments.
