KARACHI – The Pakistan Stock Exchange (PSX) witnessed a sharp downturn on Monday, with the benchmark KSE-100 index plummeting 4,654.77 points (-2.85%) to close at 158,443.42, as cross-border military escalation with Afghanistan severely dented investor sentiment.
Selling pressure intensified throughout the session, dragging the index to an intra-day low of 157,678.01 around 2:40 PM. The downturn was broad-based, with major sectors including commercial banks, oil and gas exploration companies, cement, and fertiliser all trading deep in the red. Index-heavyweights such as HUBCO, MARI, PPL, and HBL saw significant declines.
Analysts directly linked the sell-off to the heightened geopolitical uncertainty. “The selling pressure is mainly due to the developments over the weekend, including geopolitical factors and cross-border tensions,” said Sana Tawfik of Arif Habib Limited. The sentiment was echoed by Waqas Ghani of JS Global, who noted, “Investors remain cautious amid heightened geopolitical uncertainty and profit-taking after recent gains.”
The market decline follows a statement from the military’s media wing detailing intense clashes along the Pak-Afghan border, which have raised concerns over regional stability. The bearish trend marks a continuation from the previous week, halting a sustained period of market advances.
