PSX witnesses highest-ever, single-day decline of 6,482 points as geopolitical tensions rise

KARACHI: The Pakistan Stock Exchange (PSX) witnessed its highest-ever single-day decline on Thursday. The benchmark KSE-100 index plunged by 6,482 points as investors opted for panic selling following further escalation in geopolitical tensions.

Amid the sharp sell-off, trading was temporarily halted for one hour after the KSE-30 Index dropped more than 5.0 per cent for five consecutive minutes, activating the market’s circuit breaker mechanism.

The KSE-100 plunged by 6,482.21 points, or 5.89 per cent, to 103,526.82 points, down from 110,009.03 points recorded in the last session. The highest index of the day remained at 111,881.03 points, while the lowest level was recorded at 101,598.91 points.

The market has lost Rs1.9 trillion in value since the Pahalgam attack (April 22). The PSX has lost 12.6 per cent or 14,904 points to close at 103,526 points.

Analyst Ahsan Mehanti at Arif Habib Ltd said, “Stocks witnessed the largest decline in history across the board amid fears over tensions and escalation between Pakistan and India.” He said that a weak rupee, economic uncertainty and falling Pak dollar bonds played a catalystic role in the record bearish close.

The KSE-30 index decreased by 2,131.27 points or 6.34 per cent to 31,478.14 points from 33,609.41 points.

Traded shares rose by 103 million shares to 653.55 million shares from 550.076 million shares. The trading value rose to Rs35.437 billion from Rs30.121 billion. Market capital narrowed to Rs12.525 trillion against Rs13.344 trillion. Of the 450 companies active in the session, 35 closed in green, 373 in red and 42 remained unchanged.

Maaz Mulla, an analyst at Topline Securities, said the PSX faced an unprecedented meltdown on Thursday.

Investor sentiment remained deeply shaken throughout the session, which saw extreme volatility. The KSE-100 recorded its highest-ever intraday movement of 10,282 points, swinging from an intraday high of 1,872 points to an intraday low of 8,410 points.

“The market crash followed alarming geopolitical developments after ISPR Director General Lt Gen Ahmed Sharif Chaudhry announced that Pakistani forces had neutralised 25 drones sent by India since last night. He also confirmed that four army personnel were injured,” he said. “The statement sent shockwaves through financial markets, triggering widespread panic selling amid fears of escalating cross-border hostilities. Investors rushed to offload positions, leading to a broad-based decline across sectors.”

The highest increase was recorded in PIA Holding Company Limited B, which rose by Rs639.28 to Rs7,032.03 per share, followed by Khyber Textile Mills Limited, which increased by Rs60.73 to Rs668.07 per share. A significant decline was noted in Unilever Pakistan Foods Limited, which fell by Rs450.54 to Rs22,080.75 per share; Rafhan Maize Products Company Limited followed it, which closed lower by Rs172.44 to Rs8,652 per share.

Muhammad Hasan Ather, an analyst at JS Global, said heightened military tensions between India and Pakistan triggered a wave of panic selling, wiping out billions in market value. “Temporary trading halts did little to calm investor nerves. Moving forward, market sentiment remains fragile, hinging on geopolitical developments. Diplomatic de-escalation and government reassurances to stabilise confidence and prevent further downside in the coming sessions.”

WorldCall Telecom remained the volume leader with 93.253 million shares, which closed lower by 12 paisas to Rs1.10 per share. Kohinoor Spinning, with 28.484 million shares, followed it, which closed lower by 93 paisas to Rs3.94 per share.

Other significant turnover stocks included K-Electric Ltd, BO Punjab, Fauji Cement, Cnergyico PK, Maple Leaf, Sui South Gas, Pak Int Bulk, and Fauji Foods Ltd.In the futures market, 321 companies recorded trading, 5 of which increased and 316 decreased.