The Pakistan Stock Exchange (PSX) came under heavy selling pressure on Monday, October 5, 2026, with the benchmark KSE-100 index plunging nearly 2,000 points as renewed political tensions between the government and Pakistan Tehreek-e-Insaf (PTI) rattled investor confidence.
How Far Did the Market Fall?
The index stood at 166,278.52 by 12:28pm, down 1,876.97 points, or 1.12%, from the previous close of 168,155.49. Selling was heavy from the opening bell, with the index shedding over 1,600 points within the first few minutes of trading.
By 9:43am, the index had already slipped to 167,606.83, down 548.66 points. Losses then accelerated through the morning session, pushing the index down to an intraday low of 166,167.79, a drop of 1,987.70 points, or 1.18%, before paring back slightly. The day’s high stood at 167,918.36.
| Time | KSE-100 Level | Change |
|---|---|---|
| Previous Close | 168,155.49 | — |
| 9:43am | 167,606.83 | -548.66 (-0.33%) |
| Intraday Low | 166,167.79 | -1,987.70 (-1.18%) |
| Intraday High | 167,918.36 | — |
| 12:28pm | 166,278.52 | -1,876.97 (-1.12%) |
Why the Market Fell: Government-PTI Standoff
The sell-off was driven primarily by heightened domestic political anxiety after talks between the government and PTI collapsed without a breakthrough. PTI has pressed ahead with its planned march towards Islamabad, deepening concerns over a renewed political confrontation.
Two issues remained key sticking points in the failed talks:
- Differences over counterterrorism policy
- Access to jailed PTI founder Imran Khan
With no resolution in sight and PTI continuing its march, investors grew worried about possible disruption, prompting broad-based selling across the market.
Oil Prices Offered Little Relief
Falling international oil prices, usually a positive for an oil-importing economy like Pakistan, did little to offset the political worries this time. The market remained volatile throughout the session as investors weighed the domestic standoff against developments in global oil markets, but political risk clearly dominated sentiment.
A Rough Stretch for PSX
Monday’s fall extends a difficult patch for the exchange. The KSE-100 had already dropped 2,610 points, or 1.5%, over the previous week, as geopolitical uncertainty, elevated oil prices, and stalled US-Iran negotiations kept investors cautious. The index slipped below the psychological 170,000 level during that stretch and hasn’t recovered it since.
Other recent pressures on investor sentiment have included a widening trade deficit and higher T-bill yields, even as September inflation eased to around 10.3% from 11.1% in August.
Frequently Asked Questions
Why did the PSX fall nearly 2,000 points today?
The main trigger was renewed political tension after government-PTI talks broke down, with PTI pressing ahead with a march towards Islamabad amid disputes over counterterrorism policy and access to Imran Khan.
What was the KSE-100’s lowest point during the session?
The index hit an intraday low of 166,167.79, down 1,987.70 points, or 1.18%, from the previous close.
Did falling oil prices help the market today?
Not significantly. While international oil prices fell, political concerns dominated investor sentiment and outweighed any relief from cheaper oil.
Has the PSX been under pressure recently for other reasons?
Yes. The index fell 2,610 points over the previous week due to geopolitical uncertainty, elevated oil prices, and a widening trade deficit, in addition to today’s political-driven decline.
With the government-PTI standoff still unresolved, investor sentiment is likely to stay cautious in the sessions ahead. We’ll update this article as the situation, and the market’s reaction, develops.
