KARACHI: Bearish conditions prevailed on the Pakistan Stock Exchange (PSX) on Friday amid a dearth of positive economic news and a delayed agreement with the International Monetary Fund under the third review.

Surging oil prices in the backdrop of the deepening Gulf crisis kept equity investors jittery, who indulged in panic-selling for the third straight session on Friday.

Overnight, Finance Minister Muhammad Aurangzeb told the Senate Standing Committee on Finance that the IMF review mission had appreciated Pakistan’s initiatives up to February and agreed to discuss the impact of the US-Iran conflict if it is prolonged. He said the Fund would also review external finance, inflation, revenue, and the current account position in light of regional development and trends in the balance of payments and remittances.

The minister stressed that Pakistan had hard-earned macroeconomic stability and would protect it and build upon it. He said the government was also engaged with friendly partners in this regard.

Topline Securities Ltd said that during the initial hours of trading, range-bound activity was observed. As the session progressed, the market came under pressure, with the index declining by 555.27 points, or 0.36pc, to close at 153,866. This pressure can be attributed to investors’ fear of any negative developments over the weekend, stemming from the ongoing Middle East conflict, with oil prices already hovering around $100 a barrel.

The largest negative contribution to the index came from Engro Holdings, Fauji Fertiliser, Lucky Cement, Hub Power and Meezan Bank, which collectively wiped out 649 points from the index.

The deteriorating geopolitical situation and mounting tensions with Afghanistan were clearly reflected in market participation, as trading volume shrank 25.04pc to 303m shares, while traded value plunged 40.46pc to Rs14.6bn. Dost Steels Ltd emerged as the volume leader, with 27.7m shares.

Ali Najib, Deputy Head of Trading at Arif Habib Ltd (AHL), said investors’ activity remained muted due to shortened trading hours in Ramazan. Market participants largely preferred to stay on the sidelines ahead of the weekend amid concerns about potential geopolitical developments that could fuel negative market sentiment.

Published in Dawn, March 14th, 2026