Pakistan, June 20 — The Pakistan Stock Exchange (PSX) ended Thursday in the red for a third day in a row. The benchmark KSE-100 Index dropped 463 points, closing at 120,002.59. The index had started strong, reaching over 121,700 points, but later reversed gains due to regional and global worries.
Geopolitical tensions played a major role in the decline. A recent solo meeting between US President Donald Trump and Pakistan’s Army Chief, without any civilian officials, drew attention. Many in Islamabad see it as a diplomatic win. However, it also sparked debate about changing regional alliances, which made investors nervous.
At the same time, the US Federal Reserve kept interest rates unchanged. Although it signaled future rate cuts, it warned of slower changes due to inflation and new tariffs. This mix of news added to the uncertainty and pushed investors to the sidelines.
Trading activity remained low and selective. Most of the focus stayed on major sectors. Experts noted that foreign investors continue to pull out, and fears about currency stability are growing. Despite low stock prices, investors are waiting for clearer signs before making new moves.
The market had already lost over 1,500 points on Wednesday. With Thursday’s loss, the total two-day drop reached nearly 2,000 points. Analysts expect the market to stay uncertain unless there’s progress in budget policies, regional peace, and economic stability.
