KARACHI (October 11, 2025) — The Pakistan Stock Exchange (PSX) ended the week in negative territory on Friday, as uncertainty over the International Monetary Fund (IMF) Staff-Level Agreement (SLA) and rising border tensions continued to dampen investor sentiment.

The benchmark KSE-100 Index remained volatile throughout the session, briefly slipping below the 163,000-point mark before limited late buying helped it recover slightly to close at 163,089 points.

According to a report by Topline Securities, the market shed 1,433 points, or 0.87%, following reports that Pakistani forces had allegedly carried out strikes targeting a leader of the banned Tehreek-i-Taliban Pakistan (TTP) inside Afghanistan — a move that heightened diplomatic strains between Islamabad and Kabul.

Key Decliners and Market Performance

Heavyweight stocks such as Engro Corporation, Systems Limited, MCB Bank, Habib Bank Limited (HBL), and Engro Fertiliser contributed the most to the index’s decline, collectively dragging it down by more than 700 points.

Trading activity also showed signs of fatigue, as overall market turnover dropped sharply to 1.39 billion shares, with the total value of shares traded falling to Rs47.7 billion.

K-Electric Limited dominated the volume charts, leading the activity with nearly 200 million shares changing hands.

Analysts’ Take

Ali Najib, Deputy Head of Trading at Arif Habib Limited, noted that the market has witnessed a steady correction since touching its all-time high of 169,988 points on October 3, losing nearly 6,890 points or 4.05% since then.

Friday’s session saw wild swings, with the index plunging over 2,000 points intraday to 162,411, before bouncing back on bargain-hunting. However, late-session profit-taking again pushed the benchmark down before the close.

Corporate Developments

On the corporate front, two key Memorandums of Understanding (MoUs) were signed marking progress in K-Electric’s ownership transition.

One agreement involves the transfer of shares from KES Power, while another — signed between K-Electric and Trident Energy — aims to explore strategic collaboration in Pakistan’s power sector.

Economic and Geopolitical Outlook

Adding to investor unease, Afghanistan accused Pakistan of airspace violations, further escalating regional tensions. Domestically, economic indicators painted a mixed picture: the weekly inflation rate showed a slight uptick, while car sales jumped 20% month-on-month, hinting at pockets of resilience in consumer demand.

With the KSE-100 Index now slipping below its previous consolidation range of 165,000 to 170,000 points, analysts expect near-term support between 160,000 and 162,000 points, while resistance is likely around 167,000 points.

Market watchers believe that clarity on the IMF staff-level agreement and a reduction in geopolitical tensions could help restore confidence in the coming sessions.