Benchmark Index Suffers Historic Intraday Drop
Karachi: Trading at the Pakistan Stock Exchange (PSX) halted minutes after Monday’s opening bell as the benchmark KSE-100 Index plunged more than 9%, triggering an automatic suspension under exchange rules. The index fell 15,345 points, or 9.13%, to 152,717 by 9:16 a.m., marking one of the steepest single-day intraday declines in its history.
The broader market mirrored the sharp downturn. The KSE All Share Index dropped 8.49%, while the KSE-30 Index slid 9.69%. Meanwhile, Shariah-compliant benchmarks also recorded heavy losses, with the KMI-30 shedding 9.67% and the KMI All Share Index declining 8.99%. In addition, the PSX Dividend 20 Index fell 9.10%, reflecting widespread selling pressure across sectors.
Geopolitical Risks Spark Broad-Based Selling
Analysts attributed the rout to escalating geopolitical tensions in the Middle East, particularly involving Iran, which unsettled global financial markets and pushed investors toward safer assets. As a result, risk aversion intensified, prompting aggressive selling across emerging markets, including Pakistan.
At the same time, persistent foreign capital outflows, weakening corporate earnings momentum and cautious investor positioning compounded the downward pressure on local equities. Market participants described the selloff as indiscriminate, with investors offloading both cyclical and defensive stocks in a broad risk-off move.
However, trading is expected to resume following the mandatory cooling-off period. Investors will likely monitor international market trends and developments in the Middle East for direction. Consequently, analysts anticipate continued volatility in the near term as geopolitical uncertainty and external headwinds shape sentiment.
