Historic decline in PSX; KSE 100-Index drops 5,000 points

The Pakistan Stock Exchange (PSX) witnessed its largest single-day decline in history, with the benchmark KSE-100 Index plummeting by 5,000 points.

This unprecedented drop brought the index to close at 106,275 points, marking a significant blow to the market.

The bearish momentum resulted in a massive sell-off, with 1.17 billion shares traded, valued at approximately Rs56.6 billion. Over the past three days, the stock market has faced relentless selling pressure, losing a staggering 10,000 points following the announcement of the latest monetary policy.

Key developments

• Historic Drop: For the first time ever, the market recorded a historic decline of 5,000 points in a single day.
• Loss of Key Limits: The KSE 100-index breached the psychological thresholds of 111,000, 110,000, 109,000, 108,000, and 107,000 points during the session.
• Persistent Selling Pressure: This marked the third consecutive day of heavy selling, primarily triggered by mutual funds and institutional investors.
• Profit Booking by Institutions: According to brokers, large financial institutions engaged in year-end profit booking, further exacerbating the market's decline.

The announcement of a tighter monetary policy has weighed heavily on investor confidence, leading to a flurry of sell-offs across various sectors. Brokers attribute the sharp decline to large-scale selling by mutual funds and profit-booking activities by financial institutions.

Earlier in the day, the stock exchange experienced a significant downturn, with the market tumbling by over 4,900 points. The KSE-100 Index dropped to 106,154 points, reflecting a major loss after a continuous sell-off pressure that followed the recent monetary policy announcement.

Earlier, the Pakistan Stock Exchange (PSX) recovered after a bearish phase, gaining 2,671 points to enter positive territory. The market had closed with the benchmark KSE-100 Index up by 675 points, reaching 111,745 points.

The recovery restored three key levels in the market—109,000, 110,000, and 111,000 points—indicating renewed investor confidence. The positive momentum relieved traders following a period of uncertainty.