KSE-100 recovers from 3,000-point plunge before partial recovery, exchange logs fifth negative week
KARACHI:
Stocks endured a volatile session on Friday as escalating tensions on the western border – marked by Pakistani airstrikes deep into Afghan territory and reports of hundreds of casualties – weighed heavily on equities, dragging the benchmark KSE-100 index down by over 3,000 points intraday before a partial recovery trimmed losses by the close.
At the close of trading, the KSE-100 index of the Pakistan Stock Exchange (PSX) settled at 168,062, shedding 831 points or 0.49%.
“When borders get hot, markets retreat,” said Ali Najib, Deputy Head of Trading at Arif Habib Limited. The market opened on a negative note amid escalating tensions following reported airstrikes by Pakistan’s security forces on militant strongholds inside Afghanistan, he said.
Read: PSX rebounds sharply amid rollover relief
The heightened geopolitical situation triggered broad-based selling pressure, with the index declining by more than 3,000 points at one stage before partially recovering.
Major laggards of the session included UBL, FFC, OGDC, PPL, MCB, MARI, SYS, HBL, ATRL and NBP, which collectively eroded 885 points from the index.
Overall market participation remained subdued, with total traded volume recorded at 533 million shares and turnover clocking in at Rs25.4 billion. UNITY led the volume chart with 50.3 million shares traded during the session.
Read More: PSX falls further in absence of cues
The session capped a fifth negative week, with the KSE-100 shedding 5,108 points or 2.95% over the week. The index opened the week at 172,963, touched an intra-week high of 174,337, slid to a low of 162,953, before closing at 168,062.
Going forward, developments on the western border are likely to play a pivotal role in shaping market direction. Any further escalation may continue to weigh on investor sentiment, while signs of stability or de-escalation could help restore confidence and support a recovery in equities.