Pak–Afghan Border Tension Shakes Investors, KSE-100 Falls Over 3,700 Points

KARACHI: The Pakistan Stock Exchange (PSX) saw a sharp drop on Monday after serious fighting on the Pakistan–Afghanistan border over the weekend. The KSE-100 Index, which shows the performance of major companies, fell by more than 3,700 points in the first few hours of trading.

Highlights

• KSE-100 Index falls over 3,700 points in morning trading.
• Border clashes between Pakistan and Afghanistan spark fear among investors.
• At least 23 Pakistani soldiers martyred in overnight attack.
• Major companies’ shares drop as investors sell to avoid losses.
• Experts say market may stay unstable if tensions continue.

By 11:30am, the KSE-100 Index was at 159,340.06 points, down 3,758.13 points or about 2.3%. Traders said the fall was mainly because of rising border tensions, which made many investors nervous and quick to sell their shares.

Major Companies See Heavy Selling

Shares of many big companies went down. These included banks, cement companies, oil and gas firms, and energy producers.

Large companies like HUBCO, MARI, OGDC, PPL, POL, HBL, and UBL all saw their share prices fall, which pushed the overall market down.

Experts said people were worried about the weekend’s violence near the border and wanted to protect their money by selling early.

You May Like To Read: PTI’s Sohail Afridi Elected KP Chief Minister Amid Opposition Walkout

Deadly Overnight Attack Along the Border

The Inter-Services Public Relations (ISPR) said 23 Pakistani soldiers were martyred and over 200 militants were killed in heavy overnight fighting along the Pakistan–Afghanistan border.

According to ISPR, the attack started late Saturday night when Afghan Taliban fighters and TTP militants launched an unprovoked assault from across the border. Pakistani forces responded strongly.

The sudden attack has created fear about the security situation. This made investors uncertain about what could happen next.

Analysts Explain the Market Reaction

Market experts said geopolitical uncertainty — especially the border situation — was the main reason behind Monday’s fall.

Waqas Ghani from JS Global said, “Investors are being careful. They are reacting to the situation on the border. Many are also taking profits after recent gains.”

Sana Tawfik from Arif Habib Limited said, “Local and global factors matter, but the border attack was the main trigger for the sudden selling.”

Market Had Already Been Weak Last Week

The market had already been sliding last week. The KSE-100 Index fell 3.5% and closed at 163,098.19 points. Trading had slowed after weeks of strong performance, so the market was more sensitive to bad news.

If the border tension continues, experts warn that the market may remain unstable in the coming days.

You May Like To Read: Ready for meaningful talks with Afghanistan, says Defense Minister