PSX Rout: KSE-100 sheds 3,000+ points
Pakistan’s Pakistan Stock Exchange (PSX) saw a significant sell-off on Friday as geopolitical tensions with Afghanistan heightened investor anxiety, sending the KSE-100 Index down more than 3,000 points in early trading.
Selling pressure returned to the bourse amid escalating cross-border conflict between Pakistan and its neighbour, which rattled market sentiment and eroded confidence among traders and portfolio investors. By around 9:20 a.m.Stock Market Continues Momentum
local time, the benchmark index was trading at approximately 165,813.86, down 3,079.22 points, or about 1.82 percent from the previous session’s close.
Broader weakness was seen across key sectors, with heavy declines in automobile assemblers, cement, commercial banks, fertiliser, oil and gas exploration, and power shares. Major index-heavy stocks including ARL, MARI, OGDC, POL, PPL, SSGC, SNGPL, MCB, MEBL and NBP all traded in negative territory as risk aversion spread among investors.
The sell-off followed intense military engagement along the Afghanistan-Pakistan border, where Pakistani forces have reportedly responded to cross-border firing. Stock Market Continues Momentum
Government statements said at least 133 Afghan Taliban operatives were killed and more than 200 wounded in recent operations, which included strikes in Kabul, Paktia and Kandahar areas. Islamabad described the actions as an “immediate and effective response” to what it called unprovoked fire.
The sharp drop in PSX comes after a rebound in the previous session, when the KSE-100 had climbed more than 4,200 points supported by improved sentiment and active participation in both ready and futures markets.
The rout at the PSX mirrors broader market jitters, with Asia-Pacific equity indices also under pressure amid global concerns, including valuation uncertainties in major technology stocks and geopolitical tensions elsewhere that have weighed on investor risk appetite.
Analysts say that persistent geopolitical uncertainty, particularly in regional hotspots, tends to dampen portfolio inflows and prompt a flight to safer assets, contributing to volatility in Pakistan’s equity markets.
The recent escalation along the long-tense Afghanistan–Pakistan border has seen various flare-ups since late 2025, tied to cross-border insurgent activity and military responses, which have periodically reverberated in security and economic arenas.
Investors will be watching developments closely, as further geopolitical shifts or signs of de-escalation could influence market direction in the coming sessions.