Pakistan Stock Market KSE 100 Market Crash Afghanistan Conflict Investor Alert — Stock market slides sharply as Pakistan-Afghanistan border tensions impact trading and investor confidence.

Markets Crash as Pakistan-Afghanistan Conflict Escalates

Pakistan-Afghanistan tensions trigger sharp KSE-100 losses, affecting major sectors, while investors react cautiously amid rising market uncertainty.

By Fahad On Feb 27, 2026

Pakistan Stocks Exchange – (Web Desk) – Rising tensions between Pakistan and Afghanistan weighed heavily on the stock market on Friday, causing the benchmark KSE-100 index to fall by over 800 points amid broad selling. During the day, the index dipped more than 1,000 points, hitting a low of 167,812 points, before closing at 168,062.16, down 830.92 points, or 0.49%.

Out of 567 companies in the futures market, 161 recorded gains, 257 declined, and 149 remained unchanged. Major sectors including commercial banks, fertilizers, oil and gas exploration, automobile assemblers, cement, oil marketing, and power generation all faced losses.

The market decline follows the Pakistani government’s report that over 130 Afghan Taliban operatives were killed and more than 200 injured after Pakistan’s security forces responded to cross-border attacks. The strikes targeted several military posts and installations in Kabul, Paktia, and Kandahar.

This drop comes after a strong rebound on Thursday, when the KSE-100 surged 4,266.79 points, or 2.59%, closing at 168,893.09 points.

Trading activity remained robust, with the ready market recording a volume of 692,402,897 shares valued at Rs 35.804 billion, up from 619,628,014 shares worth Rs 29.252 billion in the previous session. Market capitalization rose to Rs 19.019 trillion from Rs 18.668 trillion.

Unity Foods Limited led the volume chart with 71,443,224 shares, followed by Bank of Punjab with 38,659,618 shares, and K-Electric Limited with 35,071,352 shares.

Top gainers included PIA Holding Company LimitedB, which rose Rs 356.60 to close at Rs 16,497.60, and Sazgar Engineering Works Limited, gaining Rs 128.53 to settle at Rs 2,218.20. On the losing side, Unilever Pakistan Foods Limited fell Rs 375.95 to close at Rs 25,576.77, while Pakistan Tobacco Company Limited dropped Rs 113.48 to close at Rs 1,386.56.

Strong Pakistani Response After Afghan Taliban Open Fire

In the futures market, turnover reached 542,665,000 shares with a traded value of Rs 28.614 billion, compared to 514,774,000 shares worth Rs 23.879 billion in the previous session.