ISLAMABAD: The Pakistan Stock Exchange (PSX) on Tuesday dropped more than 2,000 points, with analysts attributing the decline to a lack of progress in the Istanbul talks with Afghanistan and economic uncertainty.
The benchmark KSE-100 index fell 2,062.79 points, or 1.27 percent, to close at 160,101.02 points, compared to the previous day's close of 162,163.8 points.
The development came as talks between Pakistan and Afghanistan entered their fourth day in Istanbul with no breakthrough as Islamabad made a "last-ditch effort" to persuade Kabul to act against militants.
A possible collapse of talks has raised fears about economic uncertainty in the country, which has been navigating a long path to recovery under a $7 billion International Monetary Fund (IMF) program.
"Stocks slump amid security unrest on unresolved Pak-Afghan border tensions and State Bank of Pakistan (SBP) status quo in policy rates," Ahsan Mehanti, chief executive officer of Arif Habib Commodities, told Arab News.
