KARACHI: Pakistan’s benchmark KSE-100 Index dropped sharply on Monday, falling more than 13,000 points after trading resumed following a temporary market halt triggered by heavy selling pressure.
The benchmark index of the Pakistan Stock Exchange plunged 13,157.62 points, or 8.35 percent, by 10:50am, reflecting growing investor concerns over rising global oil prices and escalating geopolitical tensions.
Earlier in the day, trading was suspended at around 9:20am after the market experienced a steep decline of 9,780.15 points, which activated the exchange’s circuit breaker mechanism.
In a notice, the Pakistan Stock Exchange said the suspension was triggered after the KSE-30 Index fell by 5 percent from the previous trading session’s close. Under PSX regulations, such a drop results in a temporary halt in trading across all equity-based markets.
The market was halted when the KSE-100 index stood at 147,715.95 points, slightly above its intraday low of 147,710.26 points.
Following the resumption of trading, the market managed to recover part of its losses. By 12:25pm, the benchmark index had trimmed its decline to 10,073.85 points, although it remained significantly lower than the previous session.
Market analysts attributed the sharp sell-off to heightened uncertainty in global markets, particularly linked to rising tensions in the Middle East and concerns over energy supply disruptions.
According to Reuters, global oil prices surged by around 25 percent on Monday, reaching their highest levels since mid-2022. Brent crude was on track for one of its largest single-day gains, while gold prices declined by about 2 percent.
The turbulence in the stock market follows a volatile week in which investor sentiment has been weighed down by external economic risks and concerns about Pakistan’s macroeconomic outlook.
Meanwhile, Prime Minister Shehbaz Sharif is expected to announce an austerity plan later on Monday to address the ongoing global fuel crisis.
Last week, the government raised the prices of petrol and high-speed diesel by Rs55 per litre, the largest increase to date, as Pakistan began to feel the economic impact of the escalating regional conflict.