PSX Falls Below 166,000 as Political Uncertainty Weighs on Stocks

The Pakistan Stock Exchange recorded a sharp decline on Monday, October 5, 2026, with the benchmark KSE-100 index closing below 166,000.

The index shed approximately 2,288 points, or 1.36%, to finish near 165,867. Selling pressure accompanied renewed domestic political uncertainty and concerns over elevated international oil prices.

KSE-100 Extends Its Decline

Exchange data showed the benchmark falling from a previous close of approximately 168,155.49.

During Monday’s session, the index traded between roughly 167,918 and 165,764. Its closing level remained close to the day’s low, showing that the market recovered only a small portion of its losses before trading ended.

Political Developments Weigh on Sentiment

According to market commentary, investors adopted a cautious approach as domestic political tensions increased.

The opposition’s march following unsuccessful talks with the government added to concerns about potential disruption. Analysts also identified higher oil prices as a source of uncertainty for inflation and broader economic conditions.

These developments were cited as pressures on sentiment, rather than a complete explanation for every stock’s movement.

Trading Activity Weakens

Regular-market trading volume fell to approximately 441.9 million shares, compared with 494 million in the previous session.

The value of shares traded declined to about Rs15.71 billion from Rs17.49 billion.

Across 499 companies traded in the ready market, 55 advanced, 409 declined and 35 remained unchanged. The figures indicate that losses extended well beyond a handful of large companies.

Market Value Drops by Around Rs261 Billion

Total market capitalisation decreased from approximately Rs18.73 trillion to Rs18.46 trillion, a reduction of around Rs261 billion.

This represents a decline in the market value of listed shares, rather than an equivalent amount of cash leaving the exchange.

Monday’s session highlighted the pressure on investor confidence as political developments and international energy costs remained in focus. The figures describe the October 5 trading session and should not be read as live market levels.