PSX Crashes Over 6,200 Points Amid Global Market Chaos and Economic Worries

The Pakistan Stock Exchange (PSX) faced a historic downturn on Monday, as the benchmark KSE-100 Index tumbled over 6,200 points—prompting a market-wide suspension. The index plummeted by 5.29%, closing at 112,504.44, marking the steepest single-day drop in recent history. The abrupt crash triggered automatic circuit breakers, halting all trading activity and sending shockwaves through Pakistan’s financial ecosystem.

Investor sentiment nosedived as fears surrounding Pakistan’s fragile macroeconomic indicators collided with a deepening global financial crisis. The KSE-100’s collapse wiped billions off the market’s capitalization and rattled both institutional and retail investors.

Leading blue-chip companies took massive hits. Pakistan State Oil (PSO) dropped Rs32.26, closing at Rs379, while OGDC lost Rs18.77 to end at Rs208. MARI, one of the major players in the energy sector, fell by Rs49.69 to settle at Rs625. Other market giants like Engro, PPL, HUBCO, and UBL also recorded double-digit losses, contributing to the widespread financial bloodbath.

Trading volumes remained high amid the panic, with over 197 million shares exchanged, amounting to a total trade value of more than Rs17 billion. Some of the most active stocks included WorldCall Telecom (WTL), Cnergyico, PAEL, and Maple Leaf Cement (MLCF), reflecting widespread sectoral anxiety.

This local market shock unfolded against the backdrop of a global sell-off that saw Asian markets crash in tandem. The panic stemmed largely from the intensifying US-China trade war. In a retaliatory move, China imposed a sweeping 34% tariff on all US imports after President Donald Trump hiked duties without warning—stoking fears of a prolonged economic conflict.

Asian indices responded violently. Japan’s Nikkei plunged more than 8%, the Topix shed over 6.5%, and China’s Shanghai Composite tumbled 6.7%. Hong Kong’s Hang Seng dropped by over 9%, with tech giants like Alibaba and Tencent leading the losses. South Korea’s Kospi fell 4.8% and triggered trading halts, while Taiwan’s Taiex plummeted 9.7%, with major firms like TSMC and Foxconn diving nearly 10%.

Australia’s ASX 200 lost up to 6.3%, and New Zealand’s NZX 50 closed down 3.7%. This domino effect of losses highlighted the interconnected nature of modern financial markets—where local economic stress, like Pakistan’s ongoing fiscal instability, becomes even more vulnerable to global tremors.

Financial analysts are urging caution, warning that this crash might not be a one-day phenomenon. Without swift intervention, such as confidence-restoring policies or market stability tools, the volatility could continue in the coming days.

As Pakistan’s market reels from this unprecedented blow, all eyes are on the government and financial regulators to take immediate steps toward economic stabilization.