KARACHI: Pakistan Stock Exchange (PSX) suffered one of the most dramatic trading days in its history on Monday as mounting geopolitical tensions and sharp global risk aversion sparked a massive selloff, wiping out vast amounts of market value and shaking investor confidence nationwide.
The benchmark KSE-100 Index slumped below 153,000 points just minutes into the session, dropping more than 15,000 points — nearly 9 percent — and triggering an automatic trading halt under exchange circuit-breaker rules. When markets resumed around 10:22 a.m., investors briefly attempted a rebound, only to see renewed selling drive the index sharply lower again. By the closing bell, the KSE-100 had fallen a staggering 16,089.17 points (-9.57pc), settling at 151,973.00, marking the largest single-day point decline on record.
BRIndex100 closed at 17,140.70, down 1,905.87 points (-10.01pc) with a volume of 690.23 million. BRIndex30: Fell to 61,545.93, losing 6,988.34 points (-10.2pc) with 522.73 million shares traded.
Traders and analysts widely pointed to escalating regional conflict and global market instability as the catalyst behind Monday’s collapse. In Pakistan, this came against a backdrop of tense political and security developments, including violent domestic protests and broader regional flashpoints that have unnerved markets and investors.
Total trading volumes surged as investors rushed to exit positions, with over 809 million shares traded in the regular market — up sharply from the previous session’s 536 million shares. Traded value nearly doubled compared to the previous session, exceeding Rs. 48.5 billion.
Analysts noted that investors reacted to risk-off sentiment across multiple fronts, including concern that a prolonged conflict could disrupt trade routes, raise energy costs and tighten liquidity in financial markets.
Major blue-chip companies were among the hardest hit, collectively dragging the market lower. Heavyweight names such as United Bank Ltd, Habib Bank Ltd, Engro Holdings, The Hub Power Company, MCB Bank, Oil & Gas Development Company, Pakistan Petroleum Ltd, Fauji Fertilizer Company and others lost significant value, shaving over 8,100 points off the benchmark.
The dramatic selloff erased an enormous amount of wealth in a single session. Total market capitalization shrank from Rs. 18.93 trillion to Rs. 17.18 trillion, trimming roughly Rs. 1.74 trillion from the aggregate valuation of listed companies.
Though the market was overwhelmingly weak, Supernet Technologies Limited and JDW Sugar Mills managed modest increases, finishing above their previous closing prices. In contrast, some heavyweight stocks experienced dramatic declines, with Unilever Pakistan Foods seeing its price cut by a massive Rs. 1,371.83, and PIA Holding Company Limited declining Rs. 944.94.
Top Companies Reflecting Significant Turnover in the ready market revealed the extremes of Monday’s trading. K-Electric Ltd. opened at Rs. 6.80 and closed at Rs. 6.70, trading 163.34 million shares over the session, making it one of the most heavily traded names amid broad selling pressure. WorldCall Telecom saw 82.6 million shares change hands, closing at Rs. 1.10.
The BR Power Generation and Distribution Index and BR Tech. & Comm. Index were the hardest hit, both losing over 10 percent of their value.The BR Commercial Banks Index fell by 9.8 percent, while the BR Oil and Gas Index dropped 9.26 percent.The BR Cement Index shed 9.72 percent, and the Automobile Assembler Index dropped 8.78 percent.
Analysts warn that the stock market’s near-term direction will depend heavily on developments in the geopolitical landscape. Continued tension or an expansion of conflict could prolong investor fear, whereas signs of de-escalation might stabilize markets over time.
Copyright Business Recorder, 2026