The Pakistan Stock Exchange closed Thursday, 22 October, firmly in the red. The KSE-100 Index — the benchmark that tracks the share prices of 100 large listed companies — finished at 163,924.31 points, down 2,006.67 points, or 1.21 percent, from the previous close of 165,930.99 — the weakest session of the week, driven by an oil shock.
A Session That Never Recovered
The index touched an intraday high of 166,180.32 in early trade, slightly above the previous close, but sellers took control quickly and never let go. By the close it had slipped to an intraday low of 163,782.41 before settling just above it.
Activity also cooled: 367.09 million shares changed hands in the ready market, with a traded value of Rs 17.998 billion — about Rs 18 billion, below Wednesday’s Rs 21.28 billion, a sign that many investors sat on the sidelines rather than buy the fall. Total market capitalisation — the combined value of all listed companies — stood at about Rs 18.17 trillion.
Why the Market Fell
The main driver came from outside Pakistan. Brent crude, the global oil benchmark, settled at $113.17 a barrel on Thursday, up 4.00 percent and at its highest level in five months, after Houthi attacks in Saudi Arabia raised fears about oil supplies.
For an oil-importing country like Pakistan, expensive crude is bad news: a higher import bill pressures the rupee, raises fuel and transport costs, and feeds inflation — the general rise in prices that reduces the value of money. When investors expect the economy to come under strain, share prices usually soften.
Within the market, commercial banks led the decline. Among individual stocks, ENGROH was the biggest drag on the index — meaning its fall pulled the index down the most — while UPFL was the biggest positive contributor, a reminder that even on a poor day, some companies still gain ground.
What This Means for the Ordinary Investor
Thursday’s fall was broad, not the failure of one or two companies. Of the 494 companies traded in the ready market, only 101 gained, while 355 lost value and 38 stayed unchanged. When selling is this widespread, it usually reflects worry about the wider economy rather than company-specific problems.
Interest rates are part of that worry. KIBOR — the rate at which banks lend to each other in Karachi, a useful sign of where borrowing costs are heading — stood at 11.76/12.01 percent for three months and 12.18/12.43 percent for six months. At the last Treasury bill auction on 14 October, the government borrowed at 12.00 percent for three months, 12.40 percent for six months and 12.50 percent for twelve months. Nothing here suggests cheap money is coming soon.
What to Watch Next
Two things matter now. First, oil: if Brent stays above $110, pressure is likely to continue; if tensions ease and prices retreat, sentiment can recover quickly. Second, the State Bank’s Monetary Policy Committee meets on Monday, 26 October, and with the oil shock feeding inflation fears, market commentary suggests investors are watching for a possible increase in the policy rate. That decision will set the tone for the week ahead.
Market data: Pakistan Stock Exchange, State Bank of Pakistan and published news reports (figures as of 22 October 2026). Written in our own words for information only — not investment advice.