PSX Volatile Amid Afghanistan Escalation

PSX Volatile Amid Afghanistan Escalation as investors react to rising geopolitical tensions, sharp swings in the KSE-100, and cautious market sentiment at the Pakistan Stock Exchange.

By Business Desk

KARACHI — The Pakistan Stock Exchange (PSX) experienced a highly volatile trading session on Friday, with the benchmark KSE-100 Index swinging sharply amid escalating geopolitical tensions with Afghanistan. The market opened under heavy selling pressure as investors fretted over reported airstrikes and cross-border clashes between Pakistani and Afghan forces, triggering broad-based selling across key sectors.

At one point during the session, the KSE-100 fell by more than 3,000 points, reflecting nervous investor sentiment amid deteriorating security along the western border. Major heavyweights — including banking, energy and industrial stocks — contributed significantly to the intraday decline as traders reduced risk exposure amid heightened uncertainty.

However, later in the day, selective buying helped the market claw back some losses, with the index closing at 168,062.16 points, down 830.92 points (-0.49%) from the previous session. Turnover remained robust, but overall participation was subdued compared to calmer trading periods as market players remained cautious.

Analysts say that continued escalation between Pakistan and Afghanistan — including reports of deep strikes on militant positions and fears of further retaliation — is dampening risk appetite and contributing to the wild intraday swings seen this week. They added that any signs of de-escalation could help stabilise the market, while fresh geopolitical shocks may prolong volatility.

Read the full report: PSX volatile amid Afghanistan escalation (Pakistan Today)