KSE-100 tumbles 3,546 points as geopolitical tensions escalate

KARACHI: The Pakistan Stock Exchange (PSX) closed sharply lower on Wednesday as geopolitical tensions escalated. A federal minister’s statement that India was planning a military attack on Pakistan in the next 24 to 36 hours created panic among investors who opted for aggressive selling. The market broke four psychological levels during its free fall across the board.

The benchmark KSE-100 index decreased by 3,545.6 points, or 3.09 per cent, to 111,326.58 points, down from 114,872.18 points recorded in the last session. The highest index of the day remained at 114,066.13 points, while the lowest level was recorded at 110,631.84 points.

Analyst Ahsan Mehanti at Arif Habib Ltd said stocks fell across the board after government reports indicated that India may be planning military action against Pakistan.He said that rupee volatility, a decline in global crude oil prices, and heightened concerns over escalating border tensions between Pakistan and India played a key role in triggering a record bearish session at the Pakistan Stock Exchange (PSX).

The KSE-30 index decreased by 1,274.04 points or 3.61 per cent to 33,993.15 points from 35,267.18 points.Traded shares rose by 81 million shares to 490.948 million shares from 409.933 million shares. The trading value rose to Rs31.124 billion from Rs29.067 billion. Market capital narrowed to Rs13.52 trillion against Rs13.948 trillion. Of the 457 companies active in the session, 60 closed in green, 352 in red and 45 remained unchanged.

Maaz Mulla, an analyst at Topline Securities, said the local equity market suffered a sharp and broad-based decline, as intensifying geopolitical tensions between Pakistan and India sent shockwaves through investor sentiment.

He said that the downturn was primarily fuelled by fears of an imminent military escalation. The minister for information and broadcasting disclosed that Islamabad has “credible intelligence” indicating that India may launch a military strike within the next 24 to 36 hours. The announcement triggered widespread risk aversion, with investors rushing to reduce exposure amid heightened uncertainty.

Key heavyweight stocks significantly contributed to the market's fall. Notable laggards included LUCK, ENGROH, UBL, PPL, and FFC, which collectively pulled the index down by 1,132 points.

The highest increase was recorded in PIA Holding Company Limited B, which rose by Rs396.94 to Rs4,366.33 per share, followed by Unilever Pakistan Foods Limited, which increased by Rs369.75 to Rs23,469.75 per share. A significant decline was noted in Ismail Industries Limited, which fell by Rs105.68 to Rs1,628.83 per share; Rafhan Maize Products Company Limited followed it, which closed lower by Rs84.90 to Rs8,950.33 per share.

Muhammad Hasan Ather, an analyst at JS Global, said the decline was triggered by escalating geopolitical tensions between Pakistan and India, fuelling investor panic and aggressive selling. The market shattered four key psychological levels, deepening concerns over stability. “Looking ahead, volatility will persist as investors assess geopolitical risks. Recovery hinges on diplomatic de-escalation and policy clarity but near-term sentiment remains fragile, with cautious trading expected,” he said.

Cnergyico PK remained the volume leader with 46.167 million shares, which closed lower by 72 paisas to Rs7.09 per share. WorldCall Telecom, with 40.695 million shares, followed it, which closed lower by one paisa to Rs1.25 per share.

Other significant turnover stocks included BO Punjab, K-Electric Ltd., Maple Leaf, Power Cement, Sui South Gas, Sui North Gas, Fauji Cement, and At-Tahur Ltd. In the futures market, 328 companies recorded trading, 9 of which increased, 318 decreased, and one remained unchanged.