Pakistan Stock Exchange (PSX) witnessed a sharp sell-off on Friday as the benchmark KSE-100 Index plunged more than 2,800 points during intraday trading, ending a four-session winning streak.
The market initially opened on a positive note, extending gains from previous sessions that were fueled by optimism surrounding the US-Iran peace framework and declining global oil prices. The KSE-100 Index climbed to an intraday high of 182,185.87 points at around 10:14am.
However, investor sentiment turned negative after reports emerged that planned technical talks between the United States and Iran in Geneva had been postponed. The meeting was expected to be a crucial step in implementing the Islamabad Memorandum of Understanding (MoU), which laid out a framework for ending hostilities and reopening the Strait of Hormuz.
Following the news, selling pressure intensified across major sectors, dragging the KSE-100 Index down by 2,858.75 points, or 1.58 per cent, to 178,539.46 points by midday compared to the previous close of 181,398.21.
According to market analysts, the postponement of the Geneva talks raised concerns about the future of the peace process and created uncertainty among investors.
Awais Ashraf, Director Research at AKD Securities, said the cancellation of the expected meeting between US and Iranian delegations had undermined investor confidence, prompting traders to book profits after several days of gains.
The decline came despite earlier expectations that easing geopolitical tensions, lower oil prices and a stable monetary policy environment would continue supporting bullish momentum in the local market.
Market participants will now closely monitor developments regarding the US-Iran negotiations, as any progress or setbacks could significantly influence investor sentiment and market direction in the coming weeks.
