KSE-100 Index Plunges Over 13,000 Points Amid Geopolitical Tensions

The Pakistan Stock Exchange (PSX) experienced significant volatility on Monday, with the benchmark KSE-100 index plunging by more than 13,000 points during midday trading. The sharp decline followed a weekend marked by heightened geopolitical instability in the region.

The trading session began with a dramatic crash, as the KSE-100 index fell by over 15,000 points from its previous close of 168,062.16 points. This sharp drop prompted the PSX to halt trading temporarily. Mohammed Sohail, Chief Executive Officer of Topline Securities, stated that the market's initial reaction was an overreaction, driven by selling from certain funds and leveraged investors.

Trading resumed at approximately 10:30am, at which point the index remained down by 12,334.88 points, representing a 7.34 percent decrease. Sohail noted that after the halt, some investors began buying as they perceived the market had already declined by 20 percent from its recent peak, presenting attractive valuations.

By 11:07am, the market showed signs of recovery, with the index down 9,164.62 points, a fall of 5.45 percent. However, the volatility persisted, and by 11:45am, the index was again trading lower, down 13,360 points.

Market participants attributed the instability to ongoing geopolitical developments, which have created uncertainty among investors. The initial sell-off was exacerbated by a few funds and leveraged players, but some stability returned as buyers entered the market following the halt.

The PSX continues to monitor the situation as trading remains volatile. No further official statements were available at the time of reporting.