Pakistan Stock Market Plunges Over 1,600 Points, Investors Rattled By Tensions & Weak Earnings

Karachi: Pakistan’s benchmark KSE-100 Index witnessed a steep fall of more than 1,600 points, closing at 158,465, as investors reacted to worsening geopolitical tensions and underwhelming corporate earnings. The sharp decline reflected widespread selling pressure across the board, according to a report by The Express Tribune.

Market sentiment remained deeply negative throughout the session, as concerns mounted over the strained relations between Pakistan and the Taliban, coupled with economic instability and political uncertainty. Analysts said these factors have eroded investor confidence, prompting many to liquidate positions rather than risk further losses.

Major Sectors in the Red

Of the 340 companies traded on the Pakistan Stock Exchange, 233 saw share prices drop, 93 advanced, and 14 remained unchanged. Heavy selling was recorded in key sectors such as banking, cement, and energy — traditionally considered market bellwethers.

Blue-chip companies including Lucky Cement, United Bank Limited, and MCB Bank were among the biggest drags on the index. However, National Bank of Pakistan (NBP) offered some resistance, buoyed by stronger-than-expected quarterly profits that briefly lifted investor sentiment.

Trading Volume and Investor Mood Sink

Trading activity was notably weaker, with total turnover declining to 951 million shares, valued at PKR 41.3 billion. Among the most actively traded stocks were K-Electric, Hascol Petroleum, and WorldCall Telecom, data from Business Recorder showed.

Market experts warned that the absence of positive economic triggers and continued political turbulence are likely to keep investors on the sidelines. Foreign inflows could also suffer further setbacks unless the government moves swiftly to restore policy stability and market confidence.

Mounting Pressure on Media Freedom

In a separate development, local media reported that Islamabad and Punjab province have been labeled the 'most dangerous places' for journalists in Pakistan, with violations against the media rising by about 60 percent in 2025.

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