PSX Ends Volatile Week Barely Above 163,000 as IMF Uncertainty and Border Tensions Shake Investor Confidence

The Pakistan Stock Exchange (PSX) wrapped up a highly volatile week on Friday with a modest recovery, as the benchmark KSE-100 Index managed to close slightly higher at 163,089 points. Despite the positive finish, the session reflected ongoing investor anxiety, with the index briefly slipping below the 163,000 level during the day.

This marked the fifth straight session of sharp market swings, driven largely by geopolitical tensions and continued uncertainty over Pakistan’s Staff-Level Agreement (SLA) with the International Monetary Fund (IMF).

Intraday Pressure Highlights Weak Sentiment

According to data from Topline Securities Ltd, the KSE-100 Index plunged by as much as 1,433 points, or 0.87%, at its lowest point during the session. Selling pressure intensified after reports surfaced claiming that Pakistani forces carried out strikes against Tehreek-i-Taliban Pakistan (TTP) leadership inside Afghanistan.

These reports triggered fresh diplomatic unease between Islamabad and Kabul, adding another layer of risk for already cautious investors.

Market volatility was further amplified by reports from Afghanistan alleging airspace violations, which deepened concerns over regional stability.

Blue-Chip Stocks Drag the Market

Heavyweight stocks were among the biggest losers of the day. Shares of Engro Holdings, Systems Ltd, MCB Bank, Habib Bank, and Engro Fertiliser came under pressure, collectively wiping out 732 points from the index.

Trading activity also slowed noticeably. Total volumes dropped to 1.39 billion shares, while turnover value declined to Rs47.7 billion, reflecting a wait-and-see approach by market participants.

K-Electric Steals the Spotlight

Despite the broader weakness, K-Electric emerged as the most actively traded stock, with nearly 200 million shares changing hands. Investor interest was fueled by key corporate developments tied to the company’s ongoing ownership transition.

Two major memorandums of understanding (MoUs) were signed during the session. One involves the transfer of shares from KES Power, while the second, between K-Electric and Trident Energy, focuses on strategic cooperation within Pakistan’s power sector.

Market Outlook Remains Fragile

According to Ali Najib, Deputy Head of Trading at Arif Habib Ltd, the KSE-100 Index has lost around 6,890 points, or 4.05%, since touching its all-time high of 169,988 points on October 3.

Friday’s session saw extreme volatility, with the index plunging over 2,000 points intraday to 162,411, before recovering on late buying. However, renewed profit-taking capped gains by the close.

Analysts expect technical support between 160,000 and 162,000 points, while resistance near 167,000 may shape short-term direction.