Pakistan Market Wrap: Market Suffers a Sharp Setback Amid Geopolitical Strains – By HMFS Research
Oct 13 2025
HMFS Research
- The KSE-100 index endured a turbulent session today, marked by a wave of aggressive selling pressure as investors reacted to escalating Afghan-Pakistan border tensions. The benchmark index plunged by as much as 5,420 points intraday, before paring some losses to close at 158,443, down 4,655 points from the previous session. Sentiment was further dampened by civil unrest in major cities, which intensified uncertainty and weakened investor confidence. The Banking, Cement, and Oil sectors bore the brunt of the market decline, reflecting widespread caution across key economic segments.
- Trading activity mirrored the prevailing volatility, with 686mn shares changing hands on the KSE-100 index and 1.36bn shares traded across the broader market. KEL (197mn), BOP (97mn), and WTL (75mn) emerged as the day’s top volume leaders. Looking ahead, the market’s trajectory will depend largely on how swiftly political and border tensions ease. A rebound phase is anticipated once stability returns, with investors likely to re-enter the market on improving sentiment. However, further downside pressure cannot be ruled out in the near term as uncertainty lingers. That said, Pakistan’s underlying macroeconomic resilience and ongoing diplomatic efforts to restore calm at the border are expected to provide a cushion to the index. Investors are advised to remain vigilant, closely monitor developments, and capitalize on attractive valuations by accumulating fundamentally strong, long-term growth stocks during periods of weakness.