KARACHI: The Pakistan Stock Exchange (PSX) witnessed an unprecedented downturn on Monday, marking one of the worst trading days in its history. The KSE-100 index plummeted over 8,000 points before trading was halted around midday, as panic selling gripped investors amid a global market meltdown.
The benchmark KSE-100 index dropped by a staggering 8,235.88 points, equivalent to a 6.93% decline, closing at 110,555.78. This dramatic slump is among the steepest single-day losses ever recorded by the PSX and reflects the broader turmoil in global markets due to an ongoing international tariff war, which has fueled fears of a global recession.
Trading began on a weak note as the market opened at 117,601.62. The bearish trend was evident from the outset, with the index falling sharply during the morning session. By 11:30am, the KSE-100 index had already lost 4,411.07 points, or 3.71%, bringing it down to 114,380.59. More than 147 million shares exchanged hands during this period, indicating heightened activity as investors rushed to offload stocks in response to global market cues.
The steep fall triggered panic among market participants, prompting regulatory authorities to suspend trading temporarily in an attempt to curb further losses and stabilize investor sentiment. However, the sell-off continued even after the resumption of trading, deepening the market’s decline.
Analysts attribute the meltdown to a combination of international and domestic pressures. The escalating tariff war among major economies has disrupted investor confidence worldwide, and the PSX has not been immune to the ripple effects. Additionally, concerns over Pakistan’s economic outlook, inflationary pressures, and uncertainty surrounding policy measures have exacerbated investor anxiety.
Market experts are urging calm, highlighting that while the drop is significant, such corrections are not unusual during periods of global financial stress. Investors are advised to exercise caution and focus on long-term fundamentals rather than reacting to short-term volatility.
This historic downturn underscores the fragility of investor sentiment and the interconnectedness of global financial markets with Pakistan’s economy.
