KARACHI: The Pakistan Stock Exchange (PSX) remained volatile for a fifth straight session on Friday, with the benchmark KSE-100 index briefly slipping below the 163,000 level before late buying helped it close marginally higher at 163,089 points.

Investor sentiment was weighed down by uncertainty surrounding the Staff-Level Agreement (SLA) with the International Monetary Fund and escalating geopolitical tensions.

According to Topline Securities Ltd, the index lost 1,433 points or 0.87 per cent. The pressure followed reports of alleged strikes by Pakistani forces on the leader of the banned Tehreek-i-Taliban Pakistan (TTP) inside Afghanistan, further straining cross-border relations.

Major drag came from Engro Holdings , Systems Ltd, MCB Bank, Habib Bank and Engro Fertiliser, which collectively knocked 732 points off the index.

Market participation weakened, with trading volume and value falling sharply to 1.39bn shares and Rs47.7bn, respectively. K-Electric topped the volume charts with nearly 200mn shares.

Ali Najib, Deputy Head of Trading at Arif Habib Ltd, noted that since peaking at 169,988 points on Oct 3, the index has lost 6,890 points, or 4.05pc. The weekend session saw sharp swings, with the index falling over 2,000 points intraday to 162,411 before rebounding, only to close lower amid late-session profit-taking.

On the corporate front, two major MoUs were signed marking progress in K-Electric’s ownership transition.

One involves the transfer of shares from KES Power, while the other, between K-Electric and Trident Energy, outlines strategic collaboration in power sector.

Geopolitical tensions escalated after Afghanistan accused Pakistan of airspace violations. Domestically, mixed economic signals emerged: weekly inflation inched up slightly, while car sales jumped 20pc month-on-month, indicating possible resilience in consumer demand.

The KSE-100 has now slipped below its recent consolidation range of 165,000-170,000. Analysts expect support in the 160,000-162,000 zone, with resistance around 167,000 likely to test market sentiment in the coming week.

Published in Dawn, October 11th, 2025