Stocks slide on budget, Middle East jitters

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KARACHI: The Pakistan Stock Exchange (PSX) witnessed yet another extremely volatile session on Friday as jittery investors remained undecided about the market direction.

An uncertain economic outlook ahead of the announcement of the federal budget for the next fiscal year and mounting tensions in the Middle East drove market sentiments depressed, forcing the benchmark index to close the weekend session in the red.

Topline Securities Ltd said a range-bound trading session was observed at the exchange, with the index fluctuating within a narrow band before closing at 170,479 points, down 696.57 points or 0.41 per cent.

The cautious market activity was largely driven by limited progress in US-Iran peace negotiations this week. Mea­nwhile, renewed tensions in the region persisted as clashes continued despite the fragile ceasefire established in April, while ongoing hostilities in Lebanon further weighed on investor sentiment.

Top positive contribution to the index came from Pakistan Stock Exchange Ltd, Javedan Corporation Ltd, Kohinoor Textile Mills, Millat Tractors Ltd and Nishat Power Ltd, as they cumulatively contributed 138 points to the index, on the other hand United Bank, Oil and Gas Development Company Ltd, Pakistan Petroleum Ltd, MCB Bank and Meezan Bank, lost value to weigh down on the index by 476 points.

Investor participation rose 4.30pc to 727m shares and the traded value incre­­­ased 2.36pc to Rs26.75 billion.

According to Arif Habib Ltd, the benchmark KSE-100 index managed to hold above the 170,000-milestone.

On the policy front, Minister of State for Finance Bilal Azhar Kayani announced that retailers with annual turnover of up to Rs200 million would pay a fixed tax of 1pc. Around 4.4 million retailers are expected to fall under the measure.

In corporate developments, Norway’s Telenor ASA is considering the sale of its controlling stake in Easypaisa Bank Ltd, while developments in US-Iran negotiations and regional security remained in focus for investors.

Analysts view the 170,000-level a key support for the coming week and 175,000 is still the upside draw.

Published in Dawn, June 6th, 2026

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