Pakistan Stock Exchange Faces Significant Drop Amid Global Market Turmoil
Trading at the Pakistan Stock Exchange (PSX) began positively today, but soon experienced a sharp decline. The benchmark KSE-100 index dropped by more than 3,000 points, or 2.84%, reaching 115,414.09 by 10 AM.
The market opened at a high of 117,601.62, but quickly plummeted to its lowest point of 115,397.00. The trading volume in the early hours stood at 63.14 million shares. Despite the severe downturn, the KSE-100 index has shown a 65.78% increase compared to the previous year. However, the year-to-date change remains modest at 0.25%.
For context, the PSX closed the previous session at 118,791.66, with today’s trading range between 115,397.00 and 117,601.62. The 52-week range for the index has been between 68,710.50 and 120,796.67.
Across various sectors, including cement, commercial banks, oil and gas exploration companies, OMCs, refineries, and power generation, significant selling pressure was observed. Major index-heavy stocks such as HUBCO, ARL, Mari Petroleum, OGDC, PPL, POL, PSO, Sui Northern, and Sui Southern all traded in the red.
According to Mohammad Sohail, CEO of Topline Securities, the sharp decline of over 3,000 points in the Pakistani market followed the global stock market crash. The sell-off came after a strong week, where positive economic developments had fueled optimism.
Globally, major stock indices in Asia saw sharp declines on Monday as US officials gave no indication of backing down from their recent tariffs plans. Investors are now speculating that the Federal Reserve might reduce interest rates in early May due to growing recession risks.
The global market situation worsened after US President Donald Trump told reporters that investors would have to “take their medicine” and that no deal would be made with China until the US trade deficit is resolved. Beijing has already unveiled its retaliatory plans, signaling further turbulence for global stock markets.
