KARACHI: The Pakistan Stock Exchange (PSX) lost momentum on Tuesday, with the benchmark KSE-100 index slipping below the 158,000-point mark as investor sentiment soured following two deadly terrorist attacks that heightened security fears.

The KSE-100 index closed at 157,870.50 points, down by 3,667.90 points, or 2.27 per cent. The session saw significant volatility, with the index fluctuating between a high of 161,516 and a low of 157,765 points, according to Topline Securities Ltd.

The downturn was largely attributed to growing concerns over regional security, following terrorist attacks in Islamabad and Wana, which triggered widespread caution among investors. As geopolitical tensions escalated, spooked traders rushed to offload stocks, particularly in the wake of bomb blasts in India and Pakistan that rattled market confidence.

Key stocks such as Engro Corporation, Oil and Gas Development, Hub Power, Fauji Fertiliser, and Lucky Cement were among the biggest decliners, collectively contributing nearly 1,000 points to the market’s slide.

Despite the bearish tone, market activity rose slightly. Trading volume increased by 6.78pc, reaching 836.42 million shares, while total traded value rose by 4.68pc to Rs38 billion. First National Equities Ltd led the volume chart with 77.1 million shares traded.

Ali Najib, Deputy Head of Trading at Arif Habib Ltd, noted that the PSX’s negative performance was due to deteriorating security conditions. He pointed to the dual terrorist attacks in Islamabad and Wana, with dozens of casualties, which spooked investors and led to a broad-based sell-off across major sectors.

The PSX’s decline reflects broader regional concerns, as violence in both Pakistan and India continues to weigh heavily on market sentiment.

On Monday, a deadly bomb blast outside New Delhi’s Red Fort Metro Station killed nine people, exacerbating the already fragile investor outlook. However, Indian stock markets showed resilience, recovering from early losses. India’s Nifty 50 and BSE Sensex closed higher on Tuesday, buoyed by optimism over a potential trade deal with Washington and hopes of a resolution to the US government shutdown, reported Reuters.

With the market now trading below its key consolidation zone of 160,000-170,000, analysts are closely watching the 155,000 level for signs of further weakness.

Any breach of this crucial support could trigger further downside pressure, as investor sentiment remains fragile amid ongoing security uncertainties.The PSX’s future performance hin­ges on developments in the security landscape, with investors awaiting clearer signals on the evolving situation.

Published in Dawn, November 12th, 2025