The Pakistan Stock Exchange (PSX) plummeted by over 4,600 points on Monday due to continuing political uncertainty, the weekend conflict with Afghanistan and the ongoing crackdown on the Tehreek-i-Labbaik Pakistan.
The benchmark KSE-100 index opened at 163,098.19 points before dropping by 4,654.77 points, or 2.85 per cent, to close at 158,443.42.
The PSX had experienced a sharp decline over the previous week as a combination of global and domestic uncertainties dented investor sentiment.
Intense border clashes between Pakistan and Afghanistan that started late on Saturday night and continued into Sunday morning cast a shadow over the bourse. The Inter-Services Public Relations (ISPR) said 23 troops were martyred and 200 Taliban and affiliated terrorists were killed when Islamabad responded to aggression by Kabul.
Meanwhile, a crackdown against TLP protesters early Monday, who had been camped at Muridke after authorities blocked their route to Islamabad by digging up trenches, added more pressure.
“The new week opened on a sour note amid weekend reports of retaliatory action along the Afghan border and Friday’s global equity declines; risk aversion deepened as government measures against TLP fueled rumours of broader unrest,” said Yousuf M. Farooq, director of research at Chase Securities.
Last week, the KSE-100 index fell by nearly 3.5pc, weighed down by concerns over the delayed staff-level agreement (SLA) with the International Monetary Fund (IMF), geopolitical tensions in the region, and widespread profit-taking.
Additionally, selling pressure in insurance stocks, which saw a net sell of $25 million, further dampened market sentiment. Geopolitical risks, particularly last week’s blast in Kabul, added to the unease, heightening fears of escalating tensions with Afghanistan.
