The Pakistan Stock Exchange (PSX) witnessed one of its steepest single-day falls in recent months as the benchmark KSE-100 index plunged by more than 4,100 points on Monday. The downturn came in response to an escalating geopolitical crisis triggered by the United States’ recent unauthorized military strike on Iran’s nuclear facilities, rattling investor confidence and sparking heavy sell-offs across the board.
The trading session opened under immediate pressure. By 9:32 AM, the index had already dropped 2,046 points, reflecting a 1.7 percent decline as early tremors gripped the market. The losses accelerated as the day progressed. By 3:15 PM, the KSE-100 had sunk to 115,887, a sharp decline of 4,136 points or 3.56 percent. The market closed marginally higher from that level at 116,167 points but still posted a heavy loss of 3.21 percent, equal to 3,855 points.
This sharp fall followed international news confirming that US forces had conducted an airstrike on Iran’s nuclear infrastructure, igniting fears of a broader regional conflict. The resulting uncertainty sent shockwaves through regional markets, with Pakistan’s equity market being among the hardest hit due to its susceptibility to geopolitical instability and its dependence on regional trade and energy imports.
During the trading session, over 595 million shares were traded with a total market value of Rs. 23.48 billion. The widespread sell-off saw 467 companies transacting their shares, out of which only 56 recorded gains. A staggering 385 companies suffered losses, while the share prices of 26 firms remained unchanged.
Some of the most actively traded stocks that suffered significant losses included WorldCall Telecom (WTL), Sui Southern Gas Company (SSGC), Pakistan Aluminium Beverage Cans (PASL), K-Electric (KEL), and Kohinoor Spinning Mills (KOSM). WTL closed at Rs. 1.36, down Rs. 0.10, with over 53 million shares exchanged. SSGC lost Rs. 4.2 to close at Rs. 39, with nearly 36 million shares traded. PASL dropped to Rs. 2.78 after shedding Rs. 0.12 on a volume of 24 million shares. KEL ended the day at Rs. 4.91, down by Rs. 0.24 with 23.7 million shares traded. KOSM also declined to Rs. 5.05, down Rs. 0.54, with over 22 million shares changing hands.
The downward momentum was not confined to specific sectors and reflected a broad-based risk-off sentiment. Analysts attributed the panic selling to fears of prolonged geopolitical instability and its impact on oil prices, inflation, and foreign investor sentiment. With investors looking to minimize exposure, institutional withdrawals added to the downward pressure.
Market experts expect volatility to persist in the coming sessions unless geopolitical tensions ease or are diplomatically contained. In the meantime, cautious trading is expected to dominate as local and international investors keep a close eye on developments in the Middle East.