KSE-100 Plunges 4,300 Points as Selling Pressure Intensifies
Pakistan's benchmark KSE-100 index crashed by nearly 4,300 points on Thursday morning, with sustained selling across sectors eroding investor confidence as a combination of global risk-off sentiment, surging oil prices, and domestic uncertainty triggered one of the sharpest intraday declines in recent months.
The selloff was broad-based, with blue-chip stocks, banking sector names, and energy-linked equities all registering significant losses. Market participants pointed to the surge in international oil prices past $123 per barrel — driven by reports of potential US military action against Iran — as a primary external trigger, given Pakistan's acute sensitivity to energy import costs and their cascading impact on fiscal and current account dynamics.
Domestic factors compounded the pressure, as investors weighed concerns over inflation persistence, rupee stability, and the trajectory of the IMF programme amid an uncertain external environment. The scale of the decline prompted calls for a circuit breaker assessment, with brokerage houses advising caution.
Analysts noted that a sustained drop of this magnitude, if not arrested before close, would represent a major confidence shock for an equity market that had recovered considerably from its 2023 lows. The session underscored the Pakistan Stock Exchange's vulnerability to both geopolitical shocks and structural macroeconomic fragility.
