KARACHI: The Pakistan Stock Exchange (PSX) plunged sharply with the KSE-100 Index falling 4,654.77 points (2.85%) to close at 158,443.42, as investors reacted to heightened border tensions with Afghanistan, ongoing domestic political uncertainty, and delays in IMF staff-level agreements.
Trading was dominated by widespread declines, with 78% of listed shares losing value, causing investors to incur losses totaling approximately PKR 5.33 trillion. Nearly all major sectors, including banking, oil and gas, and cement, experienced significant sell-offs, while several multinational companies were delisted.
The decline intensified following reports of a cross-border attack in which 23 Pakistani soldiers were killed and over 200 militants were neutralized, adding to geopolitical concerns. Analysts cited the combination of stalled IMF negotiations, political instability, and security incidents as key drivers of the market turmoil.
Waqas Ghani, Head of Equity Research at JS Global, observed that the market had lost 9,500 points in the past six days due to persistent geopolitical uncertainty, which triggered widespread selling across key sectors.
Ahmed Shiraz from K-Trade Securities noted that the market was already under pressure from weak economic indicators, potential monetary policy changes, and stringent IMF conditions, and that recent unrest, including TLP protests and border clashes, further exacerbated the downturn.
Among individual stocks, Bank Al-Habib fell 5.19%, Engro Holdings declined 3.32%, and Lucky Cement also saw significant losses. Trading volume reached 1.36 billion shares, with K-Electric being the most actively traded stock at 197.3 million shares.
PSX reported that 65% of the trading value consisted of Shariah-compliant shares, while foreign investors purchased shares worth PKR 617.1 million.
