KSE-100 index plunges over 11,000 points after trading halt amid global tensions

ISLAMABAD: Pakistan’s benchmark KSE-100 index experienced a sharp decline on Monday, falling by 11,725.47 points by 10:35am after trading resumed. Earlier in the morning, trading was halted at around 9:20am when the index dropped 9,780.15 points, triggering a market suspension in accordance with Pakistan Stock Exchange (PSX) regulations.

According to a notice issued by the PSX, the halt was initiated after the KSE-30 index registered a 5 per cent fall from its previous closing value. As per PSX rules, this led to the suspension of all equity-based markets.

The KSE-100 index was halted at 147,715.95 points, which was only slightly above its intraday low of 147,710.26 points. The market’s downturn comes amid rising geopolitical tensions and a significant increase in global oil prices, factors that have negatively impacted investor confidence.

The latest decline follows a particularly volatile week for the market, with heightened uncertainty reflecting investor concerns over external risks and macroeconomic instability. According to Reuters, oil prices surged by approximately 25 per cent on Monday, reaching their highest levels since mid-2022. Brent crude was reported to be on track for further gains.

Market analysts have pointed to the combination of external geopolitical developments and the spike in oil prices as key drivers behind the sell-off. The PSX’s automatic suspension mechanism is designed to prevent excessive volatility and allow investors time to assess market conditions during periods of significant stress.

The ongoing situation continues to be closely monitored by market participants and regulators as uncertainty persists in both local and global financial markets.