KARACHI: Following the US-Iran war, the Pakistan Stock Exchange (PSX) saw a bloodbath on Monday, which led to the biggest one-day drop in its history. Five minutes after opening, the market collapsed by 9.0 per cent, and it was stopped for an hour. After a brief rebound, it ultimately fell and closed 16,089 points lower.
The benchmark KSE-100 Index tumbled by 16,089.17 points or 9.57 per cent to 151,973 points from 168,062.17 points recorded in the last session. The highest index of the day remained at 159,328.6 points, while the lowest was 151,747.96 points.
Ali Najib, deputy head of trading at Arif Habib Ltd, said the PSX endured its steepest single-day decline in history. The sharp downturn was triggered by escalating geopolitical tensions following the outbreak of war between the US and Iran, which severely dented investor confidence and sparked widespread panic selling.
Selling pressure dominated from the opening bell, with the index falling to an intraday low of 152,991 down 15,071.01 points (-8.97 per cent) in first 5 minutes of trading triggered trading halt.
After trading resumed around 10:22am, the market staged a strong technical rebound, with the index recovering over 6,000 points to reach an intraday high of 159,329. However, the recovery proved short-lived as renewed selling pressure in the final hours erased gains and pushed the market to its day’s low close.
Major laggards included FFC, UBL, ENGROH, HUBC, MEBL, OGDC, HBL, LUCK, MCB, and PPL, which collectively shaved 8,148 points off the index.
“Going forward, developments on the geopolitical front will remain a key determinant of market direction. Continued escalation could prolong volatility and exert further pressure on investor sentiment,” said Ali Najib. “Conversely, any meaningful signs of stability or de-escalation may help restore confidence, reduce risk premiums, and pave the way for a gradual recovery in the equity market.”
The KSE-30 index plunged by 4,995.92 points, or 9.73 per cent, to 46,326.47 points from 51,322.39 points. Traded shares rose by 273 million shares to 809.55 million shares from 536.241 million shares. The trading value increased to Rs48.512 billion from Rs25.54 billion. Market capitalisation narrowed to Rs17.185 trillion against Rs18.93 trillion. Of the 483 companies active in the session, only 21 closed in green, 413 in red, and 49 remained unchanged.
The highest increase was recorded in Supernet Technologies Limited, which rose by Rs18.70 to Rs1,410.7 per share, followed by JDW Sugar Mills Limited, which increased by Rs7.48 to Rs900 per share. A significant decline was noted in Unilever Pakistan Foods Limited, which fell by Rs1,371.83 to Rs23,883.17 per share. PIA Holding Company Limited B Limited followed it, which closed lower by Rs944.94 to Rs16,500 per share.
According to Topline Sales Desk, Pakistan equities opened the session on an exceptionally bearish note, as aggressive and broad-based selling pressure gripped the market. The steep correction was largely driven by widespread panic selling from both retail and institutional investors, compounded by previously overbought market conditions.
Analyst Mubashir Anis Naviwala at JS Global warned, “Short-term outlook remains fragile as volatility is expected to stay elevated.” K-Electric Ltd remained the volume leader with 163.349 million shares, which closed lower by 96 paisas to Rs6.7 per share. WorldCall Telecom with 82.602 million shares, followed it, which closed down by 17 paisas to Rs1.12 per share.
Other significant turnover stocks included F Nat Equities, BO Punjab, Cnergyico PK, National Bank XD, Hum Network, Maple Leaf, Pak Petroleum XD and Oil & Gas Dev. In the futures market, all 322 that recorded trading were decreased.
