Karachi: The KSE100 index experienced a significant drop of over 10% at the market opening, triggered by the ongoing military conflict in the Middle East. This decline added to the index’s 8.7% fall in February 2026, leading to a trading halt within the first seven minutes of the session.

According to AKD Securities Limited, the KSE100’s reaction may be an overestimation of the conflict’s direct economic impact on Pakistan, as the country is not directly involved in the hostilities. The securities firm anticipates a recovery in the index, given the situation’s manageable repercussions for Pakistan’s economy.

AKD Securities also highlighted the potential for the situation to bolster Pakistan’s strategic relationships with Gulf Cooperation Council countries, enhancing its position as a reliable military ally. The firm expressed confidence in several key stocks, including OGDC, PPL, UBL, MEBL, HBL, FFC, ENGROH, PSO, LUCK, FCCL, INDU, ILP, and SYS, as part of their preferred investment strategy amidst the current circumstances.