The Pakistan Stock Exchange (PSX) witnessed a steep fall on Friday as escalating tensions between Iran and Israel, coupled with new regulatory measures in the federal budget, triggered panic selling. The benchmark KSE-100 index dropped by 1,947 points, closing at 122,147, breaking through the key support levels of 124,000 and 123,000.
Market experts linked the sharp decline to the renewed geopolitical instability in the Middle East, which has heightened investor uncertainty across the region. The timing of the fall, they noted, coincides with heightened risk aversion among local and foreign investors.
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In addition to external pressures, traders pointed to fresh conditions introduced in the federal budget, particularly a new requirement for investors to prove their eligibility to the Federal Board of Revenue (FBR) before participating in the stock market. This regulatory move has further dampened market confidence.
Analysts cautioned that unless clarity is provided on the new investment rules and regional tensions ease, investor sentiment is likely to remain under pressure in the near term.
