ISLAMABAD (PEN) : The Pakistan Stock Exchange (PSX) saw a sharp decline on Friday, losing nearly 2,000 points as heightened tensions between Iran and Israel rattled investor confidence. The benchmark KSE-100 index dropped by *1,947 points, closing at **122,147*, breaching two key psychological thresholds—124,000 and 123,000—during intra-day trading.
Geopolitical Shock Waves
The market reaction came in the wake of Israeli airstrikes on Iran, which have triggered fears of broader regional instability. Analysts say the heightened risk environment has prompted investors to pull back, especially from equities, as they seek safer assets in uncertain times.
Domestic Budget Measures Add Pressure
In addition to geopolitical concerns, market analysts attributed the downturn to investor unease over *new regulatory measures introduced in the federal budget. Specifically, the requirement for investors to prove their eligibility to the **Federal Board of Revenue (FBR)* before purchasing shares has created additional friction in the trading environment.
“The market decline is not solely a result of external tensions. Domestic policy changes, particularly those involving stricter tax documentation, are adding to investor anxiety,” said a senior market analyst.
Outlook
Experts warn that investor sentiment is likely to remain cautious in the near term, especially if geopolitical tensions escalate or if domestic fiscal policies continue to weigh on market participation.
The combination of regional uncertainty and regulatory tightening has created a complex environment for traders, with both global events and local reforms shaping market behavior.
