Pakistan Stock Market Suffers Major Decline as Index Falls Over 4,000 Points

The Pakistan Stock Exchange (PSX) witnessed a sharp and unexpected downturn on Monday as the KSE-100 Index plunged by more than 4,100 points during intraday trading. The sell-off was triggered by heightened geopolitical tensions and heavy institutional selling, sparking panic across the trading floor.

The benchmark index dropped by 4,238 points, reaching 158,860, one of the steepest single-day declines recorded in recent months. The market also breached five key psychological levels — 163,000, 162,000, 161,000, 160,000, and 159,000 points — in just one session, reflecting the intensity of the selling pressure.

Traders and brokers reported that institutional investors and financial institutions aggressively liquidated holdings across multiple sectors, including banking, energy, and cement, amplifying market volatility. Retail investors followed suit, adding to the sharp decline as fears spread throughout the trading community.

Market analysts attributed the downturn to a combination of domestic uncertainty and growing cross-border tensions between Pakistan and Afghanistan, which have dampened investor confidence.

“Selling pressure intensified as investors reacted to speculative reports and geopolitical uncertainty,” said a Karachi-based stock analyst. “Market sentiment remains fragile, and many investors are moving funds toward safer assets.”

Experts noted that while economic fundamentals remain stable, the sudden surge in risk aversion among institutional investors has created short-term volatility. They added that unless confidence returns, the market could experience further fluctuations in the coming sessions.

Brokerage houses confirmed that several key sectors saw significant institutional outflows, particularly in blue-chip stocks. “Financial institutions are still selling aggressively, keeping pressure on the index,” one senior PSX broker said.

Market observers believe that the government’s economic management and clarity on regional developments will be crucial in restoring investor trust and stabilizing the stock market in the days ahead.