PSX Falls 1,138 Points on Thursday as Political, Iran Tensions Weigh

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KARACHI, Thursday, October 8, 2026: The Pakistan Stock Exchange ended lower on Thursday as domestic political uncertainty and renewed concerns over possible US action against Iran kept investors cautious.

The benchmark KSE-100 Index fell 1,138 points to close at 167,441, reversing the previous session’s modest gains. The index moved within a 2,036-point range during the trading day.

Market sources said reports that US President Donald Trump was considering fresh action against Iran weighed on Asian markets and added to risk aversion at the PSX. Global markets also came under pressure on Thursday as tensions around Iran and the Strait of Hormuz intensified.

Domestic political uncertainty in Islamabad further weakened investor sentiment, with market participants adopting a more cautious approach.

KSE-100 Reverses Wednesday’s Gain

The decline came a day after the KSE-100 Index closed at 168,580.41 on Wednesday, October 7, gaining 120.30 points in a volatile session.

That provides a clear comparison with Thursday’s close of 167,441 and shows how quickly sentiment shifted as domestic and regional risks returned to focus.

Readers can also check the PSX performance on Wednesday, October 7, 2026 for the previous session’s closing level and market trend.

Market Capitalisation Drops Rs149 Billion

Around 360 million shares changed hands during Thursday’s session, with traded value reaching approximately Rs17 billion.

Total market capitalisation fell by Rs149 billion to Rs18.597 trillion.

Political uncertainty has weighed on the market repeatedly in recent sessions. Earlier this week, the benchmark index also suffered a sharp decline as investors reacted to the government-opposition standoff and wider geopolitical risks.

The latest session reflected the continued sensitivity of the market to both domestic political developments and escalating tensions in the Middle East.