KSE-100 falls over 2% points amid renewed political, security uncertainty

The Pakistan Stock Exchange (PSX) saw a sharp downturn on Tuesday, as the benchmark KSE-100 Index declined by over 3,600 points or 2.27%, marking the steepest drop in recent sessions amid renewed geopolitical tensions and a fragile security situation.

Selling pressure persisted throughout the trading session, as investors adopted a cautious approach in light of external developments, dragging the benchmark index to an intra-day low of 157,765.92

At close, the KSE-100 Index settled at 157,870.50, down 3,667.90 points or 2.27%.

Market analysts pointed out that the prevailing political uncertainty was the main factor driving the negative sentiment.

A day after the Senate passed the ‘The Constitution (Twenty-seventh Amendment) Bill, 2025’, Minister for Law and Justice Senator Azam Nazeer Tarar tabled the legislation in the National Assembly to amend the Constitution of Pakistan.

Investor sentiments were further dented following a blast outside the district and sessions court building in Islamabad’s G-11 area.

Commenting on the market’s performance, Saad Hanif, an analyst at Ismail Iqbal Securities, said the decline was primarily driven by renewed security concerns following a bomb blast in Islamabad, alongside escalating regional geopolitical tensions.

“The compromise in the security situation has hurt investor sentiment,” Hanif told Business Recorder.

The sell-off came a day after the PSX witnessed a strong rally, buoyed by renewed investor optimism, improved trading volumes, and robust corporate activity. The benchmark KSE-100 Index surged by 1,945.50 points, or 1.22%, to settle at 161,538.41 on Monday.

Internationally, Asian stocks rose on Tuesday while gold and the Nasdaq were basking in their sharpest gains for months, thanks to signs that an end to the US government shutdown was in the offing.

The Nasdaq rose 2.3% to recover much of the losses inflicted last week by a bout of nerves around the valuation and profitability of AI firms.

South Korea’s Kospi was also clawing back last week’s falls and advanced 1.3% in early trade, while Japan’s Nikkei rose 0.4%. Markets in Hong Kong and China were slightly lower by mid-morning.

S&P 500 futures were steady.

Meanwhile, the Pakistani rupee registered further gains against the US dollar, appreciating 0.01% in the inter-bank market on Tuesday. At close, the currency settled at 280.78, a gain of Re0.03 against the greenback.

Volume on the all-share index increased to 836.42 million from 783.29 million recorded in the previous close. The value of shares rose to Rs38.08 billion from Rs36.37 billion in the previous session.

F. Nat.Equities was the volume leader with 77.17 million shares, followed by K-Electric Ltd with 66.87 million shares, and WorldCall Telecom with 46.81 million shares.

Shares of 484 companies were traded on Tuesday, of which 79 registered an increase, 364 recorded a fall, and 41 remained unchanged.