The Pakistan Stock Exchange (PSX) faced a sharp decline on June 13, 2025, with the KSE-100 index plummeting 1,949.56 points, or 1.57%, to close at 122,143.56.
The drop was triggered by escalating geopolitical tensions following Israel’s airstrikes on Iran, which targeted nuclear facilities and military commanders, as reported by PSX.
The KSE-100 index hit an intra-day high of 123,058.06 but fell to a low of 121,604.59, reflecting intense market volatility. Trading volume reached 238,192,304 shares, valued at PKR 19,718,824,728, down from Thursday’s close of 124,093.12. The market’s reaction aligns with a broader risk-off sentiment driven by global uncertainties.
On Thursday, the index showed turbulence, peaking at a record 126,718 before closing 259.56 points lower at 124,093.12, impacted by profit-taking and Middle East concerns.
Read: Pakistan Stock Exchange Hits Record 126,000 Amid Budget Optimism
Israel’s “Operation Rising Lion” struck Iran’s nuclear sites, including Natanz, and killed key figures like IRGC chief Hossein Salami, per Tasnim News Agency. Israel, believed to be the region’s only nuclear-armed state, declared a state of emergency, anticipating Iran’s retaliation. Iran insists its nuclear program is peaceful, but the attack has heightened fears of a wider conflict.
Positive budget announcements, strong remittances, and monetary policy optimism drove this week’s early gains in the PSX. However, these were overshadowed by geopolitical risks and profit-taking in overheated stocks. According to market analysts, the surge in crude oil prices could prompt the U.S. Federal Reserve to delay rate cuts, reducing appetite for risk assets like equities.
