PSX plummets over 2,000 points as panic sells hits on geopolitical fears

A sharp sell-off swept the Pakistan Stock Exchange (PSX) on Monday, sparking a sharp correction as escalating geopolitical tensions sent investors into risk-on mode.

Heightened concerns over the Iran-US conflict, developments in Venezuela and widening instability in the Middle East and South Asia undermined market confidence, sending the KSE-100 index down more than 2,000 points, in line with volatility in global markets.

The session began under heavy pressure, with aggressive selling pushing the index lower immediately after the opening bell.

Although bargain hunting sparked a temporary rally mid-session, lifting the index to an intraday high of 184,439.07, the rally failed to gain traction.

As the day progressed, the sellers regained control, steadily dragging the market lower and erasing all previous advances. The index moved in a wide range, touching an intraday low of 182,303.56 before stabilizing slightly near the close.

Finally, the KSE-100 ended the session at 182,384.14 points, a sharp loss of 2,025.52 points or 1.10% on the day.

KTrade Securities noted in its market wrap that the PSX saw a corrective session as heightened geopolitical tensions weighed on investor sentiment. Concerns surrounding the Iran-US situation, developments in Venezuela and broader instability in the Middle East and South Asia drove risk-on behaviour, mirroring the volatility seen in global markets.

As a result, the KSE-100 closed at 182,384 points, down 2,025 points, as investors chose to take profits after the recent strong recovery. Despite the decline, activity remained elevated with KSE-100 volumes touching 1.05 billion shares, suggesting active repositioning rather than panic selling.

Selling pressure was broad-based, with profit-taking seen in key sectors including commercial banks, oil and gas, investment firms and cement. Index-heavy names such as Systems Limited, United Bank, Meezan Bank, Engro Holdings, Fauji Fertiliser, Lucky Cement and Hub Power remained under pressure and collectively dragged the benchmark lower.

Overall, Monday’s move appeared corrective rather than spastic. While near-term volatility is likely to continue amid global geopolitical uncertainty, the broader market structure remained intact. Once external pressures ease and clarity emerges, the market is expected to stabilize and gradually resume its underlying upward trajectory, KTrade predicted.

Total trading volume increased to 1.05 billion compared to the previous week’s close of 1.03 billion. The value of shares traded stood at Rs 48.2 billion. Shares of 481 companies were traded. Of these, 161 closed higher, 284 declined and 36 remained unchanged. Fauji Foods was the volume leader with 65.7 million shares traded, gaining Rs 0.16 to close at Rs 22.18.