KARACHI: The Pakistan Stock Exchange (PSX) witnessed a sharp decline on Friday, with the benchmark KSE-100 index dropping by 3,702.50 points, or 1.97 per cent, to close at 184,129.58. This sharp downturn was driven by heightened security concerns, particularly in Balochistan, and by broader economic uncertainty.

According to Topline Securities, the market was under heavy selling pressure after the Kashmir Day break, as investors looked to liquidate positions in a weak market ahead of the weekend.

A major factor influencing sentiment was Barrick Gold’s statement on its Reko Diq copper-gold project, noting that development was under review due to recent escalations in security incidents. The news dampened investor confidence, particularly impacting heavyweights like Oil and Gas Development Company (OGDC) and Pakistan Petroleum Ltd (PPL), which saw declines of 2.3pc and 5pc, respectively, cumulatively erasing 489 points from the index.

National Bank of Pakistan (NBP) also weighed heavily on the index, shedding 8pc on the day and adding another 406 points to the losses. Investor sentiment was further dampened by concerns over an upcoming court hearing on February 13 regarding the bank’s pension case.

Ali Najib, Deputy Head of Trading at Arif Habib Ltd, attributed the market’s woes to Barrick Mining’s announcement of a comprehensive review of its Reko Diq operations, as well as a bomb blast during Friday prayers in Islamabad, which intensified existing fears over national security.

On the corporate side, Gillette Pakistan saw a surge in buying interest, with its stock hitting the upper circuit after its majority shareholder agreed to a buy-back offer at Rs700 per share. The stock closed up 10pc at Rs617.02.

Despite the overall bearish trend, market activity picked up, with trading volume rising 6.47pc to 1.27 billion shares and traded value surging 36.86pc to Rs60.2bn. K-Electric led the volume chart with 517.8 million shares traded, reflecting continued retail participation.

Analysts predict the PSX will likely remain in a consolidation phase, trading within the 180,000-190,000 range. However, any further deterioration in domestic law and order or adverse geopolitical developments could push the market into deeper bearish territory.

Published in Dawn, February 7th, 2026