KSE-100 index posts seventh consecutive weekly decline amid geopolitical tensions

KARACHI: The Pakistan Stock Exchange's benchmark KSE-100 index recorded its seventh straight week of losses, as persistent geopolitical uncertainties and economic concerns weighed on investor sentiment.

The market began the week with heightened volatility, experiencing a sharp decline on Monday after global oil prices surged. This increase in oil prices was triggered by what was described as illegal US-Israel aggression on Iran, which resulted in the closure of the Strait of Hormuz. Although the market managed to recover some of its initial losses, it ultimately ended the week lower.

By the close of trading on Friday, the KSE-100 index had dropped by 2.3 per cent, settling at 153,866 points. This represented a week-on-week loss of 3,630 points. According to Arif Habib Ltd (AHL), the market's performance was shaped by a combination of factors, including the ongoing uncertainty in the geopolitical landscape and the surge in oil prices.

In addition to geopolitical developments, the market was also affected by a lack of positive economic news and the continued delay in finalising a Staff-Level Agreement (SLA) with the International Monetary Fund (IMF) for the third review of Pakistan's $7 billion Extended Fund Facility (EFF).

Market analysts noted that the absence of encouraging economic indicators and the uncertainty surrounding the IMF agreement contributed to the negative trend. The delay in the SLA has raised concerns among investors about the country's economic outlook and its ability to secure much-needed external financing.

The combination of these factors has led to a cautious approach among investors, resulting in sustained selling pressure and a prolonged period of declines for the KSE-100 index.