The Pakistan Stock Exchange (PSX) faced a major setback on Monday as panic selling triggered a steep fall of over 4,100 points in the benchmark KSE-100 Index during intraday trading. The market tumbled through multiple psychological barriers — 163,000, 162,000, 161,000, 160,000, and 159,000 — before hitting 158,860 points, marking one of the sharpest declines in recent weeks.
Analysts attributed the downturn to aggressive offloading by financial institutions and large investors, who reacted to growing economic uncertainty and heightened cross-border tensions between Pakistan and Afghanistan. “Selling pressure intensified as investors reacted to speculative reports and geopolitical uncertainty,” said a Karachi-based analyst, adding that confidence in the market remains fragile.
Brokerage firms confirmed heavy institutional selling across key sectors such as banking, energy, and cement. “Financial institutions are still selling aggressively, which is keeping pressure on the index,” remarked a senior broker at PSX.
Market observers warned that continued volatility and regional instability could further test investor sentiment in the days ahead.
