Pakistan stocks close higher amid cautious trading over Iran-US tensions

Trading at the Pakistan Stock Exchange (PSX) remained mixed on Friday as investors adopted a cautious approach amid developments

KARACHI: Trading at the Pakistan Stock Exchange (PSX) remained mixed on Friday as investors adopted a cautious approach amid developments surrounding the ongoing tensions between Iran and the United States.

The benchmark KSE-100 Index gained 266 points during the trading session, closing at 170,765 points. The increase reflected some positive activity in the market, although investor sentiment remained cautious due to uncertainty surrounding geopolitical developments and their potential impact on regional and global markets.

According to market sources, investors remained watchful as they assessed the latest developments related to the Iran-US conflict. The geopolitical situation has continued to influence market sentiment, with investors closely monitoring its possible implications for international trade, energy prices, regional stability and financial markets.

During the trading session, the KSE-100 Index remained volatile and moved within a band of 1,269 points. The fluctuations indicated that investors were actively responding to changing market expectations while maintaining a cautious stance.

Despite the volatility, buying activity in selected stocks helped the benchmark index finish the session in positive territory. However, the overall market mood remained mixed as investors continued to evaluate both domestic economic indicators and developments on the international front.

Trading activity remained relatively active during the session, with approximately 480 million shares changing hands at a total value of around Rs19 billion. The substantial volume reflected continued participation from investors despite the uncertainty prevailing in the market.

Market capitalisation also recorded an increase during the session. According to market data, the total market capitalisation of listed companies rose by approximately Rs25 billion, reaching Rs18,996 billion by the close of trading.

The rise in market capitalisation alongside the gain in the benchmark index suggested that selected sectors and companies attracted buying interest. However, analysts and market participants continued to keep a close watch on geopolitical developments, particularly those linked to tensions between Iran and the United States.

International developments can have a significant effect on Pakistan’s financial markets through changes in oil prices, currency movements, investor sentiment and expectations regarding external financing and trade. Any escalation in regional tensions could potentially increase uncertainty for investors, particularly if it affects energy supplies or international shipping routes.

For now, investors appear to be balancing opportunities in the domestic equity market against risks arising from the uncertain international environment. The movement of the KSE-100 Index within a wide intraday range also highlighted the cautious approach adopted by market participants.

The benchmark index ultimately closed 266 points higher at 170,765 points, while trading volume stood at approximately 480 million shares. The total value of shares traded was recorded at around Rs19 billion, and market capitalisation increased by Rs25 billion to Rs18,996 billion.

Market participants are expected to continue monitoring developments on both the domestic economic front and the international geopolitical landscape in the coming sessions, with investor sentiment likely to remain sensitive to major developments affecting regional markets and global financial conditions.