KSE-100 Plummets Over 2,000 Points: KE CEO Resigns | Pakistan Stock Market Update
- Pakistan’s stock market experienced a significant downturn on Friday, February 6, 2026, with the benchmark KSE-100 index falling by over 2,000 points during morning trading.
- The sell-off reflects continued investor anxiety surrounding geopolitical tensions with India and broader economic concerns within Pakistan.
- Trading volume was brisk, with K-Electric leading the activity, exchanging 207,059,103 shares and seeing a price increase of 5.54 percent to Rs8.77.
Pakistan’s stock market experienced a significant downturn on , with the benchmark KSE-100 index falling by over 2,000 points during morning trading. The index, which closed at 187,832 points on , stood at 185,765.07 points by 10:55 am local time, representing a decline of 1.1 percent.
The sell-off reflects continued investor anxiety surrounding geopolitical tensions with India and broader economic concerns within Pakistan. While the immediate catalyst for today’s decline isn’t explicitly stated, the market’s vulnerability has been underscored by recent events, including missile tests conducted by both India and Pakistan, as reported in April 2025. The earlier tensions, following a terror attack in Jammu and Kashmir, led to a similar, though less severe, market correction, with the KSE 100 shedding over 2,500 points at that time.
Trading volume was brisk, with K-Electric leading the activity, exchanging 207,059,103 shares and seeing a price increase of 5.54 percent to Rs8.77. National Bank of Pakistan and Bank of Punjab followed, with volumes of 33,116,438 and 27,288,113 shares respectively, but both experienced declines – 7.13 percent to Rs266 and 7.13 percent to Rs40.42, respectively.
Adding to the market’s unease, Moonis Alvi stepped down as Chief Executive Officer of K-Electric on , a development disclosed to the Pakistan Stock Exchange (PSX). While the reasons for Alvi’s resignation were not immediately detailed, such leadership changes often contribute to investor uncertainty, particularly in a volatile market environment.
Despite the overall negative trend, some stocks bucked the decline. First Elite Capital Modaraba saw the largest percentage gain, rising 10.02 percent to Rs22.5. Arpak International Investments Ltd. And East West Insurance Company Limited also posted gains, increasing by 10 percent to Rs66 and 10 percent to Rs51.15, respectively.
Conversely, First Tri-Star Modaraba experienced the steepest fall, declining 10.01 percent to Rs43.25. Janana De Malucho Textile Mills Limited and Dewan Textile Mills Limited also suffered significant losses, falling 9.29 percent to Rs122.02 and 9 percent to Rs6.88, respectively.
The broader market indices also reflected the downturn. The KSE100PR index fell 1.02 percent to 58,349.47, while the All Share index decreased 0.94 percent to 111,787.47. The KSE 30 index dropped 1.09 percent to 56,911.09. Sector-specific indices also showed weakness, with the KMI 30 index down 0.98 percent at 262,681.93, the BKTI down 1.35 percent at 54,375.63, and the OGTI down 1.89 percent at 37,911.82.
The Pakistan Stock Exchange (PSX) data, as of , at 12:00 PM, shows a KSE100 high of 188,036.30 and a low of 184,548.34, with a volume of 388,632,473 shares traded. The total value of shares traded reached Rs33,631,306,432.92.
The current market weakness comes at a challenging time for Pakistan’s economy, which is already facing significant headwinds. The earlier report from April 2025 highlighted a bleak IMF growth forecast as a contributing factor to market instability. The country’s reliance on IMF funding and its ongoing economic struggles make it particularly susceptible to geopolitical shocks and negative investor sentiment. The substantial loss in market capitalization – Rs820 billion reported in a similar downturn in April 2025 – underscores the fragility of the Pakistani financial system.
In contrast to the sharp decline in Pakistan, Indian markets exhibited more resilience, though they did open lower. The BSE Sensex fell 0.85 percent, and the NSE Nifty slipped 0.58 percent, demonstrating a comparative stability that reflects stronger economic fundamentals and greater investor confidence. This divergence highlights the widening economic gap between the two nations.
Looking ahead, the PSX is likely to remain volatile in the near term, sensitive to developments in the India-Pakistan relationship and the overall global economic outlook. Investors will be closely watching for further policy responses from the Pakistani government and any indications of improved economic conditions. The performance of key sectors, such as energy (K-Electric) and banking (National Bank of Pakistan, Bank of Punjab), will be particularly important to monitor.