Karachi, January 12, 2026 – The KSE-100 index at the Pakistan Stock Exchange (PSX) faced a sharp setback on Monday, declining by over 2,000 points amid escalating geopolitical tensions. The benchmark index closed at 182,384.14 points, down 2,025.53 points or 1.1% from the previous close of 184,409.67 points, reflecting investor caution and market volatility.
During the trading session, the index reached a high of 184,439.06 points and a low of 182,303.56 points, with a total trading volume of 418.8 million shares and a market value turnover of PKR 33.67 billion. Analysts noted that the decline comes after a period of consolidation, as investors reacted to external uncertainties that have created a cautious market sentiment.
The market downturn was largely influenced by rising geopolitical tensions, particularly the ongoing developments between Iran and the United States, which dominated investor attention over the weekend. Market participants adopted a selective trading approach, with many preferring to stay on the sidelines until clarity emerges on the international front.
Equity experts suggest that while the recent rally in the PSX had attracted positive momentum, heightened global uncertainties and geopolitical risks have prompted investors to reassess exposure, particularly in high-risk sectors. Traders are expected to remain vigilant, monitoring developments in foreign relations, oil prices, and other macroeconomic indicators that could impact market direction.
Despite the sharp decline, market analysts remain cautiously optimistic, emphasizing that selective investment strategies and careful risk management will be key for investors navigating the current volatile environment at PSX.