KARACHI: Panic gripped the Pakistan Stock Exchange today as the KSE-100 index suffered its largest-ever single-day decline, shedding nearly 10,000 points during a turbulent trading session. The market triggered multiple “halt” sessions as investors scrambled to offload shares across all major sectors.
The freefall began immediately after the opening bell, reacting to global crude oil prices nearing $120 per barrel. Investors fear that the soaring energy costs will cripple Pakistan’s manufacturing sector and lead to a massive hike in the policy rate by the State Bank of Pakistan (SBP) to counter incoming inflation.
Blue-chip stocks in the cement, fertilizer, and automobile sectors bore the brunt of the selling pressure. By mid-day, the index broke through several support levels, crashing past the 85,000 and 80,000 marks. Market analysts point to the widening current account deficit and the looming threat of a global energy crisis as the primary catalysts for this institutional sell-off.
Foreign investors and local mutual funds remained net sellers throughout the day. While the Finance Ministry attempted to calm the markets by citing ongoing talks with the IMF, the uncertainty surrounding the Middle East conflict outweighed any domestic optimism. Analysts warn that unless the government announces a concrete relief package for the energy sector, the KSE-100 may face further downward pressure in the coming sessions.