The Pakistan Stock Exchange (PSX) faced one of its darkest trading sessions on Monday, as panic selling gripped the market from the opening bell.
The benchmark KSE-100 Index opened deep in the red and was down by more than 15,000 points within minutes of trading. By 9:22am, the PSX had fallen to 152,991.15, a drop of 15,071.01 points or 8.97 percent.
The sharp slide triggered an automatic market halt. In a notice to traders, the exchange said trading had been suspended for one hour after the KSE-30 Index fell 5 percent from the previous close, as required under regulations. All equity markets were paused.
When trading resumed around 10:22am, there was a brief wave of buying. The PSX recovered more than 6,000 points at one stage and reached an intraday high of 159,328.59. But the relief did not last.
Selling gathered pace again in the final hours. By the closing bell, the KSE-100 had settled at 151,972.99, down 16,089.17 points or 9.57 percent. It marked the biggest single-day fall in the index’s history.
Fears over oil and inflation
Brokerage houses linked the fall to rising geopolitical tensions in the Middle East. Analysts said global investors were moving away from riskier markets and shifting money into safer assets such as the dollar and gold.
Topline Securities said the sell-off was driven by growing uncertainty abroad, which had sparked heavy selling across sectors.
For Pakistan, the timing is worrying. The country depends heavily on imported fuel. Higher oil prices can widen the trade gap and put fresh pressure on the rupee. They can also push up transport and electricity costs, adding to inflation.
Market watchers said if oil remains expensive for weeks, it could slow economic activity and hurt corporate profits.
Heavy losses across key sectors
Selling was seen across major sectors including automobile assemblers, cement, commercial banks, fertiliser, oil and gas exploration, oil marketing companies, power generation and refineries.
Index-heavy stocks such as HBL, MCB, MEBL, MARI, OGDC, POL, PPL, HUBCO and ARL all traded lower during the day.
Among the most active shares, K-Electric closed at Rs6.70, down 12.53 percent. WorldCall Telecom fell 13.18 percent to Rs1.12. Faysal Noor Energy Limited dropped 20.13 percent to Rs1.23. Bank of Punjab lost 10 percent to Rs28.53, while Cnergyico declined 14.08 percent to Rs6.10.
National Bank of Pakistan, which was trading ex-dividend, ended at Rs235.80, down 9.83 percent. Oil and gas giants PPL and OGDC each fell 10 percent.
On the other hand, a handful of stocks managed gains. Ittehad Chemicals rose 10.02 percent to Rs22.50. Jubilee Spinning also climbed 10.02 percent. AGL NCPS gained 10.01 percent, while Husein Industries and ICCI posted moderate increases.
Some of the sharpest declines were seen in smaller counters. Loads Limited’s right shares fell 60 percent, while TSBLR1 dropped nearly 49 percent.
Global shockwaves
International markets were also under pressure. Oil prices jumped sharply as fighting between the US and Israel on one side and Iran on the other showed no sign of easing.
Brent crude rose 4.5 percent to $76.07 a barrel, after briefly crossing $82. US crude climbed 3.9 percent to $69.59 per barrel. Gold added 1 percent to $5,327 an ounce as investors sought safety.
Attention is focused on the Strait of Hormuz, a vital route for global oil and gas shipments. Around a fifth of the world’s seaborne oil trade passes through the narrow waterway. While it remains open, tanker traffic has reportedly slowed amid security concerns.
A prolonged conflict could keep energy prices high. For countries like Pakistan, that would mean renewed pressure on inflation and the external account.
Last week, the KSE-100 had already fallen 2.9 percent on a weekly basis, closing at 168,062.17 points. Monday’s dramatic slide suggests investors remain deeply uneasy as events abroad unfold.
