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Pak-Afghan Tensions Trigger Sharp 4,600-Point Drop in Pakistan Stock Exchange
The Pakistan Stock Exchange plunged over 4,600 points as border clashes with Afghanistan rattled investor confidence. Analysts cite rising geopolitical tensions and global market pressure for the sharp decline.
MH
by Muhammad Hashir
2025-10-13
Pak-Afghan Tensions Trigger Sharp 4,600-Point Drop in Pakistan Stock Exchange

The ongoing tension along the Pakistan-Afghanistan border has sent shockwaves through the financial markets, leading to a sharp fall in the Pakistan Stock Exchange (PSX) on Monday — the first trading day of the week.

At the start of trading, the benchmark KSE-100 index fell by nearly 5,000 points, reflecting heightened investor concern over regional instability. By the end of the trading session, the index had lost more than 4,600 points, closing at 158,400.

At 9:35 a.m., the KSE-100 index stood at 160,126 points, down by 2,972 points (1.82%) from the previous session. Throughout the day, investors offloaded shares across multiple sectors, exerting intense selling pressure across the board.

Major sectors affected included automobile, cement, banking, fertilizer, oil and gas, refinery, and power generation, with blue-chip companies such as HABCO, MARI, OGDC, PPL, POL, HBL, and UBL all trading in the red.

According to Sana Tawfiq, Senior Analyst at Arif Habib Limited, the plunge was largely driven by political and geopolitical uncertainty.

“This decline is mostly due to political and geopolitical tensions, especially cross-border clashes that have damaged investor confidence,” she explained.

She further noted that global market weakness has compounded the downward pressure on share prices.

The market shock follows a deadly exchange across the Pak-Afghan border over the weekend. The Inter-Services Public Relations (ISPR) reported on Sunday that 23 Pakistan Army personnel were martyred and 29 injured in an unprovoked attack from Afghan soil. In response, Pakistani forces killed over 200 militants, reportedly affiliated with the Afghan Taliban and the banned Tehreek-e-Taliban Pakistan (TTP).

Last week, the PSX had already shown signs of weakening, with a 3.5% decline, closing at 163,098 points, as trading volumes and investment trends dipped amid rising uncertainty.

Market experts warn that if the border situation remains volatile, the investor confidence could deteriorate further in the coming days, potentially leading to sustained losses across key sectors.
Tagged:

Pakistan

Afghanistan

PSX

StockMarket

KSE100
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