Stocks tumble over Pak-Afghan standoff

The Pakistan Stock Exchange (PSX) came under selling pressure on Wednesday as investors reacted to renewed tensions between Pakistan and Afghanistan, coupled with mixed corporate earnings. The benchmark KSE-100 index dropped 1,635.97 points, or 1.02%, to close at 158,465.06. The index fluctuated between the high of 160,690 and low of 158,307. Investor sentiment remained weak after peace talks between Islamabad and Kabul failed to yield progress. Analysts believe that the market correction phase is likely to continue in the near term as traders remain cautious amid uncertain political and economic conditions. KTrade Securities noted that the PSX continued to face selling pressure as the absence of positive catalysts further dampened investor confidence. The KSE-100 index dropped 1,636 points, settling at 158,465. It attributed the decline to multiple factors, including the breakdown of negotiations between Pakistan and Afghanistan, which hurt sentiment, as well as margin calls and institutional selling that intensified market volatility.