KSE-100 drops sharply by 2,206 points amid geopolitical tensions

KARACHI: The Pakistan Stock Exchange (PSX) extended the losses from the previous day and closed sharply lower under pressure amid geopolitical tensions after India took coercive actions against Pakistan following terrorism attacks in the occupied Kashmir.

The benchmark KSE-100 index plunged by 2,206.33 points, or 1.88 per cent, to 115,019.82 points, down from the 117,226.15 points recorded in the last session. The highest index of the day remained at 116,568.14 points, while the lowest level was recorded at 114,661.2 points.

Analyst Ahsan Mehanti at Arif Habib Ltd said stocks fell across the board as investor sentiment weakened following concerns over potential retaliation by Pakistan in response to India’s actions related to the occupied Kashmir attacks.

He said that a weakening rupee, alongside growing fears over deteriorating trade ties and escalating cross-border tensions between Pakistan and India, played a key role in driving the bearish close at the PSX.The KSE-30 index decreased by 691.27 points or 1.92 per cent to 35,328.39 points from 36,019.66 points.

Traded shares dropped by 99 million shares to 506.702 million shares from 605.175 million shares. The trading value dropped to Rs24.488 billion from Rs27.762 billion. Market capital narrowed to Rs14.1 trillion against Rs14.34 trillion. Of the 456 companies active in the session, 83 closed in green, 339 in red and 34 remained unchanged.

Maaz Mulla, an analyst at Topline Securities, said that the KSE-100 index extended its previous day’s losses, remaining under pressure throughout the session. Weighed down by escalating regional tensions between India and Pakistan and the conclusion of futures rollover week, the market adopted a distinctly risk-off tone.

The bulk of the negative contribution came from HUBC, ENGRO, MARI, BAHL and UBL, which collectively shaved 605 points off the index.

Despite the bearish backdrop, trading activity was led by PSO with a traded value of Rs2.36 billion, followed by MLCF (Rs2.06 billion), OGDC (Rs1.78 billion), MARI (Rs1.68 billion), and SNGP (Rs1.63 billion), signalling selective interest in key names.

The highest increase was recorded in Unilever Pakistan Foods Limited, which rose by Rs449.98 to Rs23,392.71 per share, followed by PIA Holding Company Limited B, which increased by Rs263.83 to Rs2,983.90 per share. A significant decline was noted in Rafhan Maize Products Company Limited, which fell by Rs145 to Rs8,800 per share; Nestle Pakistan Limited followed it, which closed lower by Rs50.99 to Rs6,998 per share. Analyst Muhammad Hasan Ather at JS Global said stocks dropped amid rising geopolitical tensions which rattled investor confidence. “Heightened selling pressure coincided with rollover week and results season fears, forcing cautious behaviour,” he said. “Looking ahead, we expect uncertainty to persist until clearer policy signals and corporate earnings emerge, urging a measured approach to risk management while volatility endures near term. Investor are advised to remain alert for any further market shifts.”

Power Cement remained the volume leader with 37.316 million shares, which closed higher by 25 paisas to Rs14.45 per share. WorldCall Telecom, with 31.229 million shares, followed it, which closed lower by 2 paisas to Rs1.31 per share.

Other significant turnover stocks included Sui South Gas, Cnergyico PK, Aisha Steel Mill, BO Punjab, Pak Refinery, K-Electric Ltd., Pak Int Bulk and Fauji Cement. In the futures market, 321 companies recorded trading, 21 of which increased and 300 decreased.