The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index plummeted by over 4,600 points on Monday due to continuing political uncertainty, the weekend conflict with Afghanistan and the ongoing crackdown on the Tehreek-i-Labbaik Pakistan (TLP).

The benchmark KSE-100 index opened at 163,098.19 points before dropping by 4,654.77 points, or 2.85 per cent, to close at 158,443.42.

Of 482 active scrips, only 74 advanced , 375 declined while 33 remained unchanged.

The PSX had experienced a sharp decline over the previous week as a combination of global and domestic uncertainties dented investor sentiment.

Intense border clashes between Pakistan and Afghanistan that started late on Saturday night and continued into Sunday morning cast a shadow over the bourse. The Inter-Services Public Relations (ISPR) said 23 troops were martyred and 200 Taliban and affiliated terrorists were killed when Islamabad responded to aggression by Kabul.

Meanwhile, a crackdown against TLP protesters early Monday, who had been camped at Muridke after authorities blocked their route to Islamabad by digging up trenches, added more pressure.

“The new week opened on a sour note amid weekend reports of retaliatory action along the Afghan border and Friday’s global equity declines; risk aversion deepened as government measures against TLP fueled rumours of broader unrest,” said Yousuf M. Farooq, director of research at Chase Securities.

He advised retail investors to stay focused on long-term investing with capital that matched their risk tolerance and liquidity needs, and to keep asset allocation disciplined. “While valuations are not excessive, prospective returns are likely to normalise; the outsized gains seen over the past two years are unlikely to be repeated over the next two,” Farooq said.

Last week, the KSE-100 index fell by nearly 3.5pc, weighed down by concerns over the delayed staff-level agreement (SLA) with the International Monetary Fund (IMF), geopolitical tensions in the region, and widespread profit-taking.

Additionally, selling pressure in insurance stocks, which saw a net sell of $25 million, further dampened market sentiment. Geopolitical risks, particularly last week’s blast in Kabul, added to the unease, heightening fears of escalating tensions with Afghanistan.

Major drag came from Engro Holdings, Systems Ltd, MCB Bank, Habib Bank and Engro Fertiliser, which collectively knocked 732 points off the index.