The Pakistan Stock Exchange (PSX) plunged over 4,600 points on Monday due to continued political uncertainty, the weekend conflict with Afghanistan and the ongoing crackdown on Tehreek-i-Labbaik Pakistan.
The benchmark KSE-100 index opened at 163,098.19 points before falling 4,654.77 points, or 2.85 percent, to close at 158,443.42.
The PSX had seen a sharp decline over the previous week as a combination of global and domestic uncertainties affected investor sentiment.
Intense border clashes between Pakistan and Afghanistan that began Saturday night and continued into Sunday morning cast a shadow on the stock market. The Inter-Services Public Relations (ISPR) said 23 soldiers were martyred and 200 Taliban and affiliated terrorists were killed as Islamabad responded to Kabul’s aggression.
Meanwhile, an early Monday offensive against TLP protesters, who had camped in Muridke after authorities blocked their route to Islamabad by digging trenches, added more pressure.
“The new week began on a sour note amid weekend reports of retaliatory actions along the Afghan border and Friday’s global stock declines; risk aversion deepened as government action against TLP fueled rumors of broader unrest,” said Yousuf M. Farooq, director of research at Chase Securities.
Last week, the KSE-100 index fell almost 3.5 percent, hit by concerns over the delay of the 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 sale of $25 million, further dented market sentiment. Geopolitical risks, particularly last week’s explosion in Kabul, have added to the unease, raising fears of an escalation of tensions with Afghanistan.
