KARACHI, Oct 12 — The Pakistan Stock Exchange came under heavy selling pressure on Monday, with the benchmark KSE-100 Index losing nearly 2,000 points as political uncertainty over the emergency imposed in Khyber Pakhtunkhwa added to already weak investor sentiment.
The KSE-100 closed at 165,124.41, down 1,964.86 points, or about 1.18%, according to Pakistan Stock Exchange data.
Market participants said equities were already under pressure from concerns over the Iran-US conflict, higher crude oil prices, the attack on Saudi Arabia and speculation over a possible interest-rate increase at the State Bank of Pakistan’s October 29 monetary policy meeting.
The imposition of emergency in Khyber Pakhtunkhwa, however, intensified the sell-off by adding a fresh layer of domestic political uncertainty, according to market commentary.
Political Uncertainty Adds to Market Pressure
Investor caution increased after the federal government moved to place Khyber Pakhtunkhwa under emergency rule, raising concerns about political stability and prompting traders to reduce exposure to equities.
Selling was broad-based during the session, with 322 stocks declining against 135 that advanced, while 114 remained unchanged, PSX figures showed.
Market analysts said the political development compounded a series of external and monetary-policy concerns that had already kept sentiment weak.
Oil Prices and Interest-Rate Concerns Weigh on Stocks
Investors were also watching developments in the Middle East amid fears that further escalation could keep international oil prices elevated.
For Pakistan, higher global crude prices can add pressure to inflation, the import bill and the external account, making energy-market developments particularly important for equities.
Speculation over the State Bank of Pakistan’s next interest-rate decision also weighed on sentiment, with the Monetary Policy Committee scheduled to meet on October 29.
Trading Value Reaches Rs14.5 Billion
Around 363 million shares changed hands in the regular market during the session, with traded value reaching approximately Rs14.51 billion.
The broader market also remained under pressure, reflecting cautious sentiment across multiple sectors.
The latest decline leaves investors focused on both domestic political developments and external risks, particularly regional tensions, energy prices and the outlook for monetary policy.