PSX Plunges in Sharp Sell-Off: KSE-100 Drops Over 10,000 Points Amid Geopolitical Tensions and Oil Surge

The Pakistan Stock Exchange (PSX) witnessed intense selling pressure on Monday, with the benchmark KSE-100 index tumbling sharply in early trading, triggering an automatic market halt under circuit breaker rules.

The index plunged as much as 10,000 points shortly after the opening bell, falling to around 147,715.95 from Friday’s close. This prompted a temporary suspension of trading around 9:22 a.m. PKT after the KSE-30 index breached the 5% decline threshold, halting equity-based markets to curb panic.

Trading resumed around 10:22 a.m., but volatility persisted. By mid-session, the KSE-100 hovered in the 144,000–147,700 range, with declines reported between 9,700–13,000+ points, and intraday lows dipping toward 144,000–147,000. Official PSX data showed levels such as 147,422 and similar figures around 147,718.

Analysts attribute the crash primarily to escalating geopolitical tensions in the Middle East which have driven a sharp surge in global oil prices. As a net oil importer, Pakistan faces heightened risks of inflation, a wider current account deficit, and import cost pressures. These external shocks, combined with investor risk aversion, foreign outflows, and profit-taking after the 2026 rally, which saw peaks above 190,000 earlier this year, fueled the panic.

This marks another volatile session in a turbulent period for the PSX, following prior sharp corrections linked to similar concerns. While some bargain hunting may emerge at lower levels, sentiment remains cautious amid ongoing global uncertainties and domestic economic factors, including potential IMF developments.