Karachi, October 13, 2025 – The Pakistan Stock Exchange (PSX) reeled from a brutal sell-off on Monday, with the benchmark KSE-100 Index shedding 4,654.77 points—a staggering 2.85% drop—to close at 158,443.42, erasing billions in market value as fresh cross-border violence with Afghanistan shattered investor confidence. Trading opened in freefall, plunging over 5,000 points intra-day to a low of 157,678, before a slight recovery.
The rout was triggered by overnight clashes along the Durand Line, where at least 23 Pakistani soldiers were martyred and over 200 militants killed in an unprovoked assault by Afghan Taliban forces and Tehreek-e-Taliban Pakistan (TTP) affiliates, according to the Inter-Services Public Relations (ISPR). Pakistan retaliated with precision strikes on terrorist camps, but the escalating tensions—coupled with profit-taking after recent highs—fueled panic selling across sectors.
Heavy losses battered key indices: automobiles, cement, commercial banks, fertilizers, exploration and production (E&P) oil & gas, oil marketing companies (OMCs), refineries, and power generation all posted sharp declines. Blue-chip stocks like Hub Power Company (Hubco), Mari Petroleum, Oil & Gas Development Company (OGDC), Pakistan Petroleum Limited (PPL), Pakistan Oilfields Limited (POL), HBL, and UBL traded deep in the red, dragging the index lower.
This caps a dismal week, with the KSE-100 down 1,432 points from Friday’s close of 163,098.19, amid broader geopolitical jitters including US-China trade frictions. Analysts like Waqas Ghani of JS Global warned of prolonged caution: “Geopolitical uncertainty is paramount; expect volatility until de-escalation signals emerge.” Sana Tawfik of Arif Habib Limited added, “The weekend’s developments amplified fears of regional instability.”
As the nation mourns its fallen heroes, the PSX’s bloodbath underscores how border fires can scorch economic horizons—leaving traders bracing for more turbulence.
