PSX slides 1.7pc amid Middle East tensions

The Pakistan Stock Exchange (PSX) concluded a turbulent week on a bearish note, as geopolitical tensions — particularly in the Middle East — dampened investor confidence and triggered widespread profit-taking. Despite a positive start following the State Bank of Pakistan’s (SBP) Monetary Policy Statement (MPS), which met expectations by keeping the policy rate unchanged at 11pc, the KSE-100 index closed the week down 2,120 points, or 1.7pc, at 120,023. According to Arif Habib Ltd, the market sentiment quickly shifted to caution amid escalating regional conflict, overshadowing stable macroeconomic indicators and robust auction results. The SBP held a special 22-day Treasury Bill auction for the first time, raising Rs916bn against a target of Rs900bn. Additionally, Rs557bn was raised in a Pakistan Investment Bond (PIB) auction, surpassing the Rs300bn target, with total participation of Rs1.2tr. Cut-off yields ranged between 11.39pc and 12.70pc, reflecting mixed investor expectations on interest rate trends.