Bloodbath at PSX as region reels from fallout of war

• Index sees unprecedented plunge of over 16,000 points, inflicting Rs1.7tr loss in a single day• Conflict shakes investor confidence as they lose over Rs4 trillion since January peak

KARACHI: The Pakistan Stock Exchange (PSX) on Monday witnessed the steepest single-day plunge, which inflicted unprecedented losses of Rs1.74 trillion on panicky investors who rushed to exit as the assassination of Iran’s supreme leader, Ayatollah Ali Khamenei, in airstrikes by the US and Israel sabotaged Middle East peace, caused a rout in world equity markets and fuelled a surge in oil and gas prices amid growing fears of supply disruptions as Tehran retaliated.

Violent protests breaking out across the country in the wake of Khamenei’s assassination, causing dozens of deaths in clashes with security forces, also contributed to depressed market sentiment.

Panic-driven sell-offs dragged the benchmark KSE-100 index below the 152,000 level, marking the largest single-session decline in the bourse’s history. Since the all-time peak on Jan 23, the index has tumbled by 37,193.83 points, or almost 20 per cent, causing a cumulative loss of over Rs4.03tr in market capitalisation.

Topline Securities Ltd said Pakistan equities opened the session on an exceptionally bearish note, with aggressive, broad-based selling pressure gripping the market. The KSE-100 index posted its largest-ever single-day decline, shedding 16,089 points, or 9.57pc, to close at 151,973 points.

The steep correction was largely driven by widespread panic selling from both retail and institutional investors, compounded by the market’s previously overbought condition. Amid heightened volatility, trading activity was suspended after the index plunged almost 9pc for one hour shortly after the opening bell, to stabilise market conditions, in line with a risk management rule set by the PSX.

Heavyweight constituents, including Fauji Fertiliser Company, United Bank Ltd, Engro Holdings Ltd, Hub Power Company and Meezan Bank Ltd, exerted substantial downward pressure, collectively eroding 5,167 points from the benchmark index.

Amid a pronounced........

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