Selling pressure at PSX as geopolitical tensions flare after Israeli strike on Iran
Selling pressure was observed at the Pakistan Stock Exchange (PSX), with the benchmark KSE-100 Index losing nearly 2,500 points during the opening minutes of trading on Friday, amid an escalating geopolitical situation after Israel conducted a military strike on Iran.
At 9:50am, the benchmark index was hovering at 122,533.32 level, amid a decrease of 1,559.80 points or 1.26%.
Across-the-board selling pressure was observed in key sectors including automobile assemblers, cement, commercial banks, oil and gas exploration companies, OMCs, power generation and refinery. Index-heavy stocks including OGDC, PPL, PSO, MARI and HUBCO traded in the red.
On Thursday, the PSX witnessed a modest correction, easing after a strong rally earlier in the week fueled by investor optimism surrounding the federal budget. The benchmark KSE-100 Index declined by 259.56 points, or 0.21 percent, closing at 124,093.12 points.
Globally, stocks dived in early Asian trade on Friday, led by a selloff in US futures, while oil prices jumped after Israel conducted a military strike on Iran, sending investors scurrying to safe havens such as gold and the Swiss franc.
The Israeli attack raises the risk of a fresh escalation in tensions in the Middle East, a major oil producing region, and comes at a time of heightened pressure on the global economy and financial markets from US President Donald Trump's shakeup of trade policies.
Market reaction was swift, with U.S. S&P E-mini futures slumping 1.5% as of 0055 GMT and Nasdaq futures skidding 1.7%.
Japan's Nikkei lost 1.4% and South Korea's KOSPI slipped 1.2%.
Brent crude jumped more than 6% to $73.56 per barrel. Gold climbed 1% to about $3,419 per ounce.
Israel said it was declaring a state of emergency in anticipation of a missile and drone strike by Tehran, after what it called a 'preemptive strike' over Iran's nuclear programme.
Explosions were heard northeast of Iran's capital Tehran early on Friday, the state-run Nour News said.
Two US officials who spoke on condition of anonymity said Israel had begun carrying out strikes on Iran and there was no US assistance or involvement in the operation.
This is an intra-day update
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