Karachi: The benchmark KSE100 index saw a significant decline over the past week, losing 3,267 points or 1.9% to close at 170,672 points. This downturn followed a previous rally driven by a ceasefire, as investors navigated a complicated geopolitical landscape. Average daily trading volume rose by 31.7%, even as risk appetite waned due to renewed challenges in US-Iran diplomatic talks.

According to AKD Securities Limited, market sentiment experienced a partial recovery late in the week, buoyed by the announcement of Iranian Foreign Minister Araghchi's visit to Pakistan. Additionally, the U.S. president extended the ceasefire indefinitely at Pakistan's request, staving off a major sell-off. Despite these developments, oil prices increased by 3.2% to $104.8 per barrel after Iran seized two container ships in the Strait of Hormuz, heightening fears of supply disruptions.

On the economic front, the International Monetary Fund's executive board is anticipated to review the fourth tranche of the 37-month program later in May. The State Bank of Pakistan reported an increase in foreign exchange reserves to $15.1 billion, while the domestic exchange rate slightly appreciated to 278.85 Pakistani rupees per U.S. dollar.