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The Pakistan Stock Exchange (PSX) benchmark KSE-100 index tumbled by over 2,400 points on Friday, breaking its four-day bullish spree. The sell-off came as investor confidence was shaken by the postponement of planned US-Iran talks in Geneva, which had been viewed as a key step in the peace framework under the recently signed 'Islamabad MoU'.

Coverage comparison

Reports from Dawn, which covered the market's decline through the trading day, noted that the index had entered Friday with positive momentum. Falling oil prices following the signing of the Islamabad MoU between the United States and Iran had fueled optimism, triggering buying interest across multiple sectors. As a result, the KSE-100 index had maintained its recovery for the fourth straight session on Thursday.

On Friday, initial positive momentum pushed the index to an intraday high of 182,185.87 points at 10:14am. However, the market declined almost steadily after 10:30am, with one report noting it continued until the index regained some points later. By 12:03pm, the KSE-100 index had declined by 2,858.75 points (1.58 per cent) to stand at 178,539.46 from the previous close of 181,398.21.

Reports varied on the extent of the intraday losses at different points in the day. One report said the index was down by over 1,700 points during intraday trade, while another cited a decline of over 1,800 points. A third report, which provided the most detailed account of the session, noted that after hitting an intraday low of 177,836.16 at 2:34pm, the index reversed some of its losses and closed at 178,922.75, down by 2,475.46 points (1.36 per cent) from the previous close.

Key claims

  • The KSE-100 index fell by over 2,400 points on Friday, breaking a four-session winning streak that had been driven by optimism over falling oil prices following the signing of the Islamabad MoU between the US and Iran.
  • The index hit an intraday high of 182,185.87 points at 10:14am before declining almost steadily after 10:30am.
  • At 12:03pm, the index was down by 2,858.75 points (1.58 per cent) at 178,539.46.
  • The index closed at 178,922.75, down by 2,475.46 points (1.36 per cent) from the previous close of 181,398.21, according to a report that included closing figures.
  • The downward trend followed the postponement of the planned US-Iran talks in Geneva, which were seen as a key step in the peace framework under the Islamabad MoU.
  • Awais Ashraf, director of research at AKD Securities, said the cancellation of the meeting, which was scheduled to initiate technical discussions between US and Iranian delegations, has 'shaken investor confidence'.
  • The decline came in contrast to analysts' expectations, who had anticipated that the market would sustain its positive momentum, buoyed by easing geopolitical tensions and stable monetary policy.
One report, which attributed the decline to the postponement of the US-Iran talks, also quoted Awais Ashraf as saying that Israeli strikes on Lebanon after the signing of the peace deal between the US and Iran had shaken investor confidence. This explanation was not present in other reports on the day's trading.

The market's losses were widespread, with the benchmark index dropping more than 2,400 points at its worst, before recovering slightly into the close.