Bloodbath at PSX: KSE-100 Index Sinks over 16,000+ Points

KARACHI: The Pakistan Stock Exchange (PSX) witnessed massive selling on Monday as the benchmark KSE-100 Index plummeted nearly 10% amid the rising regional geopolitical tensions.

Selling pressure gripped the PSX from the start of trading. By 9:22am, the benchmark index plunged to 152,991.15, down by 15,071.01 points or 8.97%.

Following the nearly 9% drop, trading activity at PSX was halted for one hour. “All TRE Certificate Holders are hereby informed that due to a 5% decrease in the KSE-30 index from the previous trading day’s close of the same, a Market Halt has been triggered as per PSX Regulations, and all equity-based markets have been suspended accordingly,” read the notice.

Following the resumption of trading around 10:22am, strong recovery momentum emerged, pushing the index rapidly higher by over 6,000 points, hitting an intraday high of 159,328.59.

However, selling pressure intensified in the final hours of trading. At close, the KSE-100 settled at 151,972.99, a decrease of 16,089.17 points or 9.57%. “The sharp sell-off was driven by escalating geopolitical tensions globally, triggering widespread risk-off sentiment and heavy selling pressure across the board,” said Topline Securities. This also marks KSE-100’s highest-ever one-day fall.

Heavyweight constituents, including Fauji Fertilizer Company, United Bank Limited, Engro Holdings Limited, Hub Power Company, and Meezan Bank Limited, exerted substantial downward pressure, collectively eroding 5,167 points from the benchmark index, added Topline Securities.

Analysts attributed the selling pressure to regional tensions, sparking fears of rising economic pressures on the country. Across-the-board selling was observed in key sectors, including automobile assembler, cement, commercial banks, fertiliser, oil and gas exploration, OMCs, power generation and refinery. Index-heavy stocks, including HBL, MCB, MEBL, MARI, OGDC, POL, PPL, HUBCO, ARL, traded in the red.

During the previous week, Pakistan’s equity market remained under sustained pressure, as rising geopolitical tensions and domestic security concerns continued to weigh heavily on investor sentiment.

The benchmark KSE-100 Index at the PSX declined by 5,107.53 points, or 2.9% week-on-week, to close at 168,062.17 points.

Internationally, oil prices surged on Monday, and shares slid as military conflict in the Middle East looked set to last weeks, sending investors flocking to the relative safety of the dollar and gold.

Brent jumped 4.5% to $76.07 a barrel, though it had briefly topped $82.00 at one stage, while US crude climbed 3.9% to $69.59 per barrel.