KSE-100 Index Drops Over 4,000 Points Amid Rising Border Tensions

The Pakistan Stock Exchange (PSX) witnessed a major selloff on Monday as escalating tensions at the Pakistan-Afghanistan border triggered panic among investors. The KSE-100 Index fell sharply by over 4,000 points in early trading, marking one of the steepest single-day declines in recent months.

Massive Intraday Fall in KSE-100 Index

During the session, the benchmark KSE-100 Index hit an intraday low of 158,704 points, dropping by 4,394 points from the previous close of 163,098.19. Analysts described the movement as a market correction as investors reassessed political and security developments.

Heavy Selling Across Major Sectors

The decline was broad-based, with intense selling pressure in key sectors including automobile assemblers, cement, commercial banks, fertiliser, oil and gas exploration, refineries, and power generation. Major stocks such as HUBCO, MARI, OGDC, PPL, POL, HBL, and UBL traded deep in the red, contributing significantly to the index’s fall.

Investor Confidence Shaken

Market analysts noted that weak investor sentiment was largely driven by geopolitical uncertainty. “Investors remain cautious amid heightened border tensions and profit-taking after recent gains,” said Waqas Ghani, Head of Research at JS Global.

Border Clashes Trigger Market Reaction

The market turmoil came after overnight clashes along the Pak-Afghan border, where 23 Pakistani soldiers were killed and more than 200 militants died in a cross-border offensive. The ISPR confirmed that Afghan Taliban fighters and banned groups, including TTP, launched the unprovoked attack late Saturday, intensifying security concerns.

Market Outlook Remains Uncertain

With rising security tensions and investor confidence under pressure, experts expect continued volatility in the coming days. Traders and analysts are closely watching both the geopolitical situation and policy signals from the government to assess the next direction of the market.