The Pakistan Stock Exchange (PSX) closed Friday’s trading session in negative territory as rising geopolitical tensions with Afghanistan triggered early selling pressure, dragging the benchmark KSE-100 index down by 830.92 points to settle at 168,062.17. The decline followed reports that Pakistan carried out targeted operations against terrorist outfits and their logistical bases across the border, heightening investor caution during the opening hours of trade.
The KSE-100 index plunged as much as 3,081 points during intra-day trading, reflecting a sharp reaction to regional developments. However, losses were partially trimmed later in the session as no further escalation was observed. Despite the recovery from the day’s lowest level, the benchmark still ended 0.49% lower compared to the previous close.
Heavyweight stocks accounted for the majority of the downward pressure. United Bank, Fauji Fertiliser, Oil and Gas Development Company, Pakistan Petroleum and MCB Bank collectively shaved 658 points off the index. These large-cap counters carry significant weight in the benchmark and often determine broader market direction during periods of volatility.
According to Topline Securities, the market opened on a distinctly negative note and slid to its intra-day low of -3,081 points, equivalent to a 1.82% drop. The brokerage attributed the initial sell-off to regional tensions with Afghanistan following Pakistan’s “precise operations” against terrorist elements. As trading progressed and immediate fears of escalation eased, some buying interest returned, enabling the index to recover a portion of its losses before the closing bell.
In terms of traded value, National Bank of Pakistan led activity with Rs1.36 billion, followed by MCB Bank at Rs1.12 billion, Pakistan Petroleum at Rs1 billion, The Bank of Punjab at Rs969 million and Bank Alfalah at Rs905 million. Overall traded volume reached 536 million shares, while total market value stood at Rs25.5 billion for the day.
Arif Habib Limited (AHL) noted that the latest session capped a week marked by consolidation after a sharp earlier surge. On a broader scale, the KSE-100 declined 2.9% week-on-week and 8.75% month-on-month, reflecting mounting geopolitical uncertainty. The brokerage highlighted that tensions intensified as China urged both Pakistan and Afghanistan to exercise restraint and pursue diplomatic engagement, while Pakistan’s Defence Minister Khawaja Asif warned of the possibility of “open war.”
Despite near-term headwinds, AHL pointed to historical patterns indicating that the latter part of March typically marks the beginning of a seasonally bullish period for the market. After an almost 15% drawdown from recent highs, the brokerage suggested that the index could rebound toward the 175,000 level, provided it maintains sustained support above 165,000. From a technical standpoint, the index is currently trading about 5% below its 100-day moving average but remains 7% above its 200-day moving average, levels described as longer-term accumulation zones.
Market breadth remained negative, with 34 advancing shares against 63 decliners among index constituents. Positive contributions came from Bank Alfalah, Engro Holdings and Askari Bank, while United Bank, Fauji Fertiliser and Oil and Gas Development Company weighed most heavily on performance.
AHL further observed that KSE-100 profitability, based on 83% of index weight, expanded 5.3% year-on-year in calendar year 2025. Strong earnings growth was recorded in investment banking, auto assemblers, textile composite and cement sectors, alongside moderate gains in banks and oil and gas marketing companies.
In the broader market, shares of 472 companies were traded in the ready segment. Of these, 161 closed higher, 257 declined and 54 remained unchanged. Unity Foods led volumes with 50.3 million shares, falling Rs1.18 to close at Rs10.67. First National Equities followed with 36.2 million shares, gaining Rs0.02 to Rs1.54, while The Bank of Punjab traded 30.6 million shares, losing Rs0.11 to close at Rs31.70. Foreign investors were net sellers, offloading shares worth Rs1.5 billion, according to data from the National Clearing Company.
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