KSE-100 today rose 641 points to end a two-day slide. KP’s emergency vote and Gulf oil still set the tone.

The KSE-100 today ended a two-day slide at the Pakistan Stock Exchange. The benchmark index closed on Wednesday 14 October at 165,417.51, up 641.07 points or 0.39%, after dipping to 164,060.34 in the morning, Business Recorder reported. It was the first gain since the federal government imposed emergency and governor’s rule in Khyber Pakhtunkhwa (KP), and it came on the day the National Assembly endorsed that decision. The index has now won back about 28% of the ground it lost on Monday and Tuesday, but remains below last Friday’s level.

Update, 14 Oct 2026, 9:00 pm PKT: The Senate approved the resolution endorsing the KP emergency and governor’s rule on Wednesday evening, so both houses have now voted, ahead of the 10-day constitutional window. Opposition senators challenged the resolution’s legal basis and walked out before it was declared passed, Quetta Voice reported. With the parliamentary step complete, the remaining political trigger for the KSE-100 is the court challenge in the Peshawar High Court. The index’s 14 October close of 165,417.51 is unchanged.

The short version

• The KSE-100 closed at 165,417.51 on 14 October, up 641.07 points (0.39%), with an intraday range of 164,060.34 to 165,629.35.
• Monday and Tuesday had cost the index 2,312.84 points; Wednesday recovered 641 of them, a Knock-On calculation.
• The National Assembly passed a resolution endorsing the KP emergency by majority vote; the Senate still has to vote, and court challenges are pending.
• Oil remains the outside risk: crude was quoted at $94.58 a barrel after Houthi attacks on Saudi Arabia.

What happened

Trading opened higher, slipped to the day’s low as early buyers took profits, then recovered from mid-day as investors accumulated shares, according to Business Recorder. Afternoon buying took the KSE-100 today above its earlier levels, and it closed near the session high. The previous day, the index had fallen 347.97 points to 164,776.44, after a 1,964.87-point drop on Monday that we covered in our analysis of emergency rule in KP and the PSX. Tuesday’s faded bounce is set out in our report on the KSE-100 giving up a 900-point rally.

In Islamabad, the National Assembly adopted a resolution endorsing the presidential proclamation of emergency in KP and governor’s rule by majority vote after a debate of more than four hours, Minute Mirror reported. Law Minister Azam Nazeer Tarar said Article 232 requires parliamentary approval within 10 days and cited 3,787 terrorist incidents in KP over the past year. The PTI called the move an undemocratic removal of an elected government aimed at stopping its protest march, staged a protest in the house and said it would challenge the decision in court. A petition against the measures is already before the Peshawar High Court, Business Recorder reported.

Why it matters

A close near the day’s high suggests buyers were willing to hold shares overnight, which they were not on Tuesday. For companies, the KSE-100 is the price signal for raising equity and the benchmark against which funds and retail investors judge risk. A steadier index makes it easier to price share sales and listings, including the Khaadi IPO. But one up day does not remove the risk premium: the parliamentary process is not complete, and Brent-linked fuel costs still feed into inflation, which the IMF now forecasts at 9.9%.

The knock-on effects

First order: KSE-100 today shows bargain hunting, not a verdict

The bounce looks like investors buying after two weak sessions rather than a change in the outlook. Volume was again led by low-priced shares such as WorldCall Telecom, which traded 87.3 million shares, according to Business Recorder’s tables.

Second order: the Senate vote and the courts

The Senate must still take up the resolution within the 10-day window, and legal challenges are expected in the Supreme Court and the Peshawar High Court. Each step is a possible trigger for volatility, especially for businesses with operations or supply routes in KP.

Third order: oil and the rate path

Business Recorder said sentiment stayed cautious because of high oil prices after Houthi missile and drone attacks on Saudi Arabia, and ahead of US inflation data. A higher oil bill would widen Pakistan’s import costs and keep pressure on prices, delaying cheaper borrowing for businesses. The rupee was steady, closing at 276.95 to the dollar in the interbank market.

Who could benefit

• Issuers in the pipeline: a steadier market makes pricing share sales and listings less risky.
• Brokers: volatile weeks usually lift trading activity and commissions.
• Long-term investors: the index is still below last week’s level, if political risk eases.

Who may face pressure

• Businesses with KP exposure: governor’s rule runs for two months and can be extended to six.
• Fuel-heavy sectors: transport, airlines and manufacturers if Gulf attacks keep crude high.
• Speculative traders: volume concentrated in low-priced shares can reverse quickly.

What to watch

• The Senate vote on the KP emergency, due within the 10-day constitutional window that began on 11 October.
• Hearings on the petitions in the Peshawar High Court and any filing in the Supreme Court.
• The government’s All Parties Conference on KP security, to which the PTI has been invited.
• Whether the KSE-100 can reclaim Friday’s close of about 167,089, and oil prices after further Gulf attacks.

Sources

• Business Recorder, PSX: bulls dominate, KSE-100 ends with over 600 points gain, 14 Oct 2026
• Minute Mirror, National Assembly approves imposition of emergency in Khyber Pakhtunkhwa, 14 Oct 2026
• Quetta Voice, Senate approves emergency in KP as opposition walks out, 14 Oct 2026
• Business Recorder, Imposition of emergency, governor’s rule challenged in PHC, 14 Oct 2026
• Business Recorder, Rupee registers gain against US dollar, 14 Oct 2026
• Pakistan Stock Exchange, Indices: KSE100, 13 Oct 2026

This is analysis, not investment advice. Figures are as of the market close on 14 Oct 2026. Knock-On is not affiliated with any political party.