The KSE-100 today fell 1,549.44 points, or 0.95%, to close at 162,374.87 on Friday 23 October, Business Recorder reported. It was the second heavy loss in two sessions, after Thursday’s 2,006-point drop, and it leaves Pakistan’s benchmark index about 4,045 points, or 2.4%, below last Friday’s close (Knock-On calculation). The reasons were the same ones that have driven the market all week: dearer oil as fighting between Saudi Arabia and Yemen’s Houthis intensified, weak Asian markets, and caution before the State Bank’s interest rate decision on Monday.
The short version
- The KSE-100 closed at 162,374.87, down 1,549.44 points (0.95%), after trading between 163,966.86 and 162,292.44.
- Over the week the index lost about 4,045 points, or 2.4%, from 166,419.71 (Knock-On calculation).
- Brent crude traded around $113 to $114.50 a barrel on Friday, near its highest level since early May.
- Arif Habib Limited’s head of research linked the selling to global weakness and expectations of a rate hike on Monday.
What happened
The index opened near its high and was down 1,335 points at the Friday prayers break, with 159.1 million shares worth about Rs7.66bn traded by then, The Express Tribune reported. Business Recorder said it briefly recovered towards 163,400 before sliding again into the close. Commercial banks, oil and gas explorers, oil marketing companies, power producers, cement makers, carmakers and refiners were under pressure, with Hubco, PPL, POL, MCB and UBL among the index-heavy stocks trading lower. The KSE-100 today move means the index has fallen in four of the week’s five sessions, as the chart shows.
Four losing days out of five took 2.4% off the KSE-100 this week
KSE-100 daily change in index points, 19–23 October 2026
Why it matters
“Selling pressure stems from two factors: weakness in global markets amid higher oil prices,” Sana Tawfik, head of research at Arif Habib Limited, told Business Recorder, adding the second was “cautious sentiment ahead of the monetary policy decision on Monday amid expectations of a rate hike.” Reuters reported that Saudi Aramco evacuated its Dhahran headquarters on Thursday, and The National reported Houthi claims of attacks on sites including an Aramco facility in Yanbu and the airport in Dammam. For Pakistan, which imports most of its fuel, oil above $110 feeds into import costs and inflation, the risk the IMF flagged this week in its warning on the Iran war’s impact on Pakistan. That is why the market now treats Monday’s SBP interest rate decision as a live question.
The knock-on effects
First order: KSE-100 today extends the week’s losses for investors
Following Thursday’s 2,006-point fall, two sessions have taken about 3,556 points off the index (Knock-On calculation). Equity funds and investors who bought on Wednesday’s rebound are now nursing losses going into the weekend.
Second order: higher borrowing costs may be priced in
If analysts are right that a rate hike is possible, businesses with floating-rate loans face higher interest bills, and bank deposits and government paper become more attractive relative to shares. Weekly price data also moved the wrong way: the PBS sensitive price indicator’s annual rate rose to 11.85%, with LPG cylinders up 22% in a week.
Third order: capital raising gets harder
With the index swinging by up to 2,000 points a day, companies considering listings or rights issues may wait for calmer markets, which slows the flow of new equity into Pakistani businesses.
Who could benefit
- Savers in bank deposits and T-bills: a rate hike would raise returns on cash.
- Long-term investors with cash: lower prices may offer entry points, though the outlook depends on oil and the Gulf.
- Brokers: volatile weeks usually bring more trading activity.
Who may face pressure
- Leveraged companies: higher rates would raise financing costs.
- Refiners, oil marketers and power producers: among the sectors sold hardest this week.
- Fuel-heavy industries and transporters: exposed if crude stays above $110.
What to watch
- Monday 26 October: the SBP monetary policy decision.
- Brent crude: further Houthi attacks on Saudi energy sites or Red Sea shipping.
- Petroleum levy talks: the outcome of Friday’s government talks with Jamaat-e-Islami.
- Results season: quarterly earnings from listed companies over the coming weeks.
Sources
- Business Recorder, PSX: selling continues, KSE-100 down nearly 1%, 23 October 2026
- The Express Tribune, PSX slides more than 1,330 points amid Saudi Arabia-Houthi conflict, 23 October 2026
- Investify, Bears dominate PSX for second straight session, 23 October 2026
- The Express Tribune (Reuters), Oil little changed as supply concern lingers amid Houthi attacks on Saudi Arabia, 23 October 2026
- The National, Oil prices rise as Houthis launch another wave of attacks on Saudi Arabia, 23 October 2026
- Pakistan Bureau of Statistics, Executive Summary SPI Report, week ended 22.10.2026, 23 October 2026
- Knock-On, KSE-100 today lost 2,006 points, its worst day this week, 22 October 2026
This is analysis, not investment advice. Figures are as of 23 October 2026.
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