The Pakistan Stock Exchange (PSX) witnessed a massive downturn on Monday, with the benchmark KSE-100 Index plunging by 4,655 points to close at 158,443, recording its sixth consecutive session in the red.

The market faced extreme volatility throughout the day, losing five key psychological levels — 163,000, 162,000, 161,000, 160,000, and 159,000 points — in a single session. During intraday trading, the index saw a decline of more than 5,400 points, marking one of the steepest one-day falls in recent months.

Market data showed that 1.36 billion shares, worth approximately Rs62.44 billion, were traded as panic selling gripped investors. Stockbrokers reported that financial institutions and large investors aggressively sold shares, driving the market further into negative territory.

“The pressure from institutional selling intensified as investors moved out of risky assets amid economic and geopolitical concerns,” a senior broker said.

Analysts cite global and local factors

Market analysts attributed the steep decline to a combination of international and domestic challenges. According to Ahsan Mehanti, a senior market analyst, the US-China trade war has shaken investor confidence globally, affecting regional markets including Pakistan.

“The US-China trade war and ongoing uncertainty have hit investor confidence hard. However, the market may pick up again once we see positive developments from the IMF,” said Mehanti.

Institutional selling deepens pressure

Financial institutions remained on the selling side, further intensifying the decline. Analyst Arsalan Ahmed noted that institutional selling in key sectors—such as banking, cement, and energy—added sustained downward pressure on the benchmark index.

“Large-scale selling by financial institutions has weighed heavily on the market, keeping sentiment negative,” Ahmed added.