KSE-100 Falls 2,609 Points in a Week to 168,155

It was a bruising week for investors at the Pakistan Stock Exchange, as the benchmark KSE-100 index tumbled 2,609 points to close at 168,155. The KSE-100 weekly performance reflected a cocktail of negative triggers, from stalled US-Iran talks to a global bond selloff and a widening trade deficit.

The selloff, reported by Business Recorder on October 5, 2026, erased recent gains and left market participants searching for direction as macroeconomic uncertainty grew.

What spooked the market

Analysts pointed to several culprits behind the weekly decline. Stalled talks between the United States and Iran kept geopolitical tensions simmering, while a selloff in global bond markets rattled equities worldwide — and Pakistan was no exception.

Closer to home, a widening trade deficit added to the gloom. September’s trade deficit came in at $3.56 billion, raising concerns about pressure on foreign exchange reserves and the rupee.

Sector snapshot

Banking and energy stocks, which carry heavy weight in the index, bore the brunt of the selling as investors trimmed exposure to interest-rate-sensitive sectors. Cement and fertiliser scrips also came under pressure on concerns about demand and input costs.

Defensive plays in food and pharmaceuticals fared relatively better, as they usually do when the market turns risk-averse. Trading volumes thinned as the week wore on — a classic sign that buyers were waiting on the sidelines for clearer signals.

A silver lining on inflation

There was some good news amid the gloom: consumer price inflation eased to 10.3 percent in September from 11.1 percent the previous month. The cooldown in inflation keeps alive hopes of further monetary easing, which would be a shot in the arm for stocks.

Lower inflation also gives the central bank room to support growth without worrying as much about prices running away.

Key facts

• Weekly fall: KSE-100 down 2,609 points to 168,155.
• Triggers: Stalled US-Iran talks, global bond selloff, widening trade deficit.
• September CPI: Inflation eased to 10.3% from 11.1%.
• Trade deficit: $3.56 billion in September.
• Reported by: Business Recorder, October 5, 2026.

What lies ahead

Market watchers say the index’s next move will hinge on external cues and the progress of Pakistan’s IMF review. A successful review and stable commodity prices could bring buyers back, while fresh geopolitical shocks would do the opposite.

For long-term investors, analysts advise looking past the weekly noise. With inflation cooling and corporate earnings holding up in key sectors, the market’s fundamentals remain intact — even if the short-term ride stays bumpy.