Karachi: The Pakistan Stock Exchange (PSX) fell sharply on Monday, October 12, as political developments in Khyber Pakhtunkhwa and regional security concerns triggered widespread selling across major sectors.
The benchmark KSE 100 index fell nearly 2000 points during intraday trading, extending last week's losses amid heightened political uncertainty.
The downturn followed the imposition of emergency measures and the governor's rule in Khyber Pakhtunkhwa, alongside reports of the detention of Pakistan Tehreek e Insaf (PTI) leaders, including Sohail Afridi.
Market analysts linked the decline to concerns about the possible escalation of political tensions between the federal government and PTI.
Selling pressure affected automobile manufacturers, cement producers, commercial banks, oil and gas exploration companies, oil marketing firms and power generation companies.
Major listed companies, including Hub Power Company, Oil and Gas Development Company, Pakistan State Oil, and several commercial banks, also recorded declines.
The KSE 100 index closed the previous trading week at about 167089 points, down 1066 points, or 0.6 per cent, over five sessions.
Regional developments added to investor concerns, particularly attacks involving Saudi Arabia and Yemen's Houthi movement, and threats to commercial shipping in the Gulf.
Although international crude oil prices eased on Monday following reports of a possible Russia Ukraine energy ceasefire, uncertainty over Middle Eastern supplies continued to weigh on market sentiment.
Fawad Basir, KTrade’s head of research, attributed the market's weakness to geopolitical uncertainty and rising political tensions in Khyber Pakhtunkhwa.
Investors were also assessing how elevated commodity prices could affect inflation and the State Bank of Pakistan's upcoming monetary policy decision.
The market's performance highlights Pakistani equities' sensitivity to domestic political developments, international energy prices, and broader geopolitical uncertainty.
