Bloodbath at PSX: KSE-100 sees biggest single-day decline, plummets over 3,500 points

Volatility and chaos were the themes at the Pakistan Stock Exchange (PSX) as the benchmark KSE-100 Index witnessed the biggest single-day decline, plunging by over 3,500 points on Tuesday with investors viewing Islamabad’s situation as worsening after the Pakistan Army was called in to stop the protest from becoming more violent.

The market commenced trading on a negative note amid rising political noise, dragging the KSE-100 Index to an intra-day low of 97,361 points. The stock market rebounded amid buying in the banking sector, and at around 11:08am, the KSE-100 Index hit its intra-day high of 99,819.59.

However, by 12:35pm, the KSE-100 was down an overall 2,281.88 points or 2.33% to hover around 95,797.90, a drastic fall of nearly 4,000 points.

A recovery was followed by even more selling pressure, putting the index in the range of 94,200 later in the session.

At close, the benchmark index settled at 94,574, a decrease of 3,506 points or 3.57%.

“Market has declined by 3,506 points on the back of political noise resulting from a political party’s march towards capital,” said Topline Securities in a note.

The volatile ride comes as supporters of the Pakistan Tehreek-e-Insaf (PTI) clashed with security personnel tasked to keep the protest away from Islamabad.

The Pakistan Army was deployed on Monday night after protesters clashed with the police and killed four Rangers and two police personnel.

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The lives were lost after protesters rammed a vehicle into Rangers personnel on Srinagar Highway in Islamabad, as per Radio Pakistan.

At least 119 others were injured, and 22 police vehicles were torched in clashes just outside Islamabad and elsewhere in Punjab, provincial police chief Usman Anwar told Reuters.

The government has used shipping containers to block major roads and streets in Islamabad, most of them patrolled by large contingents of police and paramilitary personnel in riot gear.

Later in the day, reports emerged that some protesters had managed to find a way near a key area in Islamabad, stoking fears that it may take a while for the situation to normalise.

On Monday, the banking sector had led the gains, as a mixed trend was witnessed at the wider PSX with the benchmark KSE-100 closing above 98,000 for the first time in history, recording an increase of 281.55 points or 0.29%.

Globally, Asian markets fell and the dollar rallied Tuesday after Donald Trump warned he would impose huge new tariffs on China, Mexico and Canada on his first day in office, dealing a blow to hopes of a more moderate approach to trade policy.

The former and next president said on his Truth Social account that he would hammer the United States’ largest trading partners in response to the illegal drug trade and immigration.

The news dampened optimism that his pick to lead the Treasury, Scott Bessent, could temper the tycoon’s assertiveness, with fears now of another trade war with China and warnings that the move – along with promised tax cuts – will reignite US inflation.

Meanwhile, the Pakistani rupee recorded a marginal fall against the US dollar, depreciating 0.03% in the inter-bank market on Tuesday. At close, the currency settled at 277.84, a loss of Re0.09 against the greenback.

Volume on the all-share index jumped to 1,116.32 million from 640.26 million on Monday.

The value of shares rose to Rs43.29 billion from Rs25.62 billion in the previous session.

K-Electric Ltd was the volume leader with 101.64 million shares, followed by B.O.Punjab with 92.02 million shares, and Hascol Petrol with 73.32 million shares.

Shares of 456 companies were traded on Tuesday, of which 53 registered an increase, 355 recorded a fall, while 48 remained unchanged.