Heightened cross-border tensions between Pakistan and Afghanistan triggered a sharp sell-off at the Pakistan Stock Exchange (PSX) on Monday, as investor confidence took a significant hit.
The benchmark KSE-100 Index plunged by 4,654.77 points, closing at 158,443.42, marking a steep 2.85% decline.
During the trading session, the index touched an intra-day low of 158,067.92, reflecting widespread panic and uncertainty in the market.
Heavy selling was observed across key sectors, including: Automobile assemblers, cement, commercial banks, fertilizer, oil & gas exploration, refineries, power generation & distribution.
Blue-chip and index-heavy stocks such as HUBCO, MARI, OGDC, PPL, POL, HBL, and UBL remained in the red throughout the session, amplifying the downward pressure.
The dramatic drop comes on the heels of a weak performance last week, during which the PSX saw reduced trading volumes, declining market capitalization, and a broader retreat across most sectors. The KSE-100 had already shed 3.5% last week, closing at 163,098.19 points, after several weeks of gains.
In contrast to the stock market’s turmoil, the Pakistani rupee posted a slight gain in the inter-bank market. As of 10:05am, the currency was trading at 281.02 against the US dollar, appreciating by Re0.15 or 0.05% during early trading hours.
