The Pakistan Stock Exchange (PSX) suspended trading on Monday after the Index dropped by over 6,200 points, triggering market-wide circuit breakers.
By mid-session, the index slumped 5.29% to 112,504.44, hitting its daily low and suspending the steepest single-day drop in recent history. Billions in market value evaporated as panic gripped investors, fueled by a toxic mix of global economic jitters and local woes. Over 197 million shares changed hands, with a traded value topping Rs17 billion, signalling intense selling pressure.
Major stocks experienced significant declines. PSO dropped by Rs32.26, closing at Rs379, OGDC fell by Rs18.77 to Rs208, and MARI decreased by Rs49.69 to Rs625. Other heavyweight stocks such as Engro, PPL, HUBCO, and UBL also faced double-digit losses. Additionally, actively traded shares like WTL, Cnergyico, PAEL, and MLCF highlighted the extensive market downturn.
Traders noted declining policy hopes concerning macroeconomic signals and profit-taking after a recent rally, with no new catalysts to change the situation. The halt on the PSX highlighted a harsh reality: investor confidence is rapidly diminishing.
Read: Pakistan Stock Exchange Plunges Over 3,000 Points Amid Global Sell-Off
The PSX crash didn’t happen in isolation. Asian markets imploded Monday as U.S.-China tariff wars escalated. Japan’s Nikkei plunged 8%, China’s Shanghai Composite 6.7%, Hong Kong’s Hang Seng 9.28%, and Taiwan’s Taiex 9.7%, with circuit breakers tripping region-wide.
Trump’s trade actions and China’s 34% counter-tariffs sent shockwaves, erasing trillions globally and fueling recession fears. For Pakistan, already on edge, the ripple effect hit like a sledgehammer, leaving markets unsettled and questions hanging.