PSX Suffers Worst Single-Day Drop Amid Political Turmoil

KARACHI: The Pakistan Stock Exchange (PSX) faced extreme volatility on Tuesday as political unrest overshadowed market fundamentals, leading to the KSE-100 Index plunging 3,505.62 points, or 3.57%, to close at 94,574.16. This marks the index’s worst single-day decline in recent history.

Trading activity saw 1.11 billion shares change hands, with losses recorded across all 355 listed companies, as market participants adopted a cautious stance. The index fluctuated sharply, reaching a high of 99,819.59 before retreating to a low of 94,180.59, underscoring investor uncertainty.

The session opened with optimism, but the index quickly lost momentum, slipping below Monday’s close of 98,079.78 points.

The ongoing protests by Pakistan Tehreek-e-Insaf (PTI) in Islamabad are cited as a key driver of the market’s bearish sentiment. PTI supporters, undeterred by barricades and government restrictions, are demanding the release of political prisoners, the reversal of the 26th Constitutional Amendment, and the restoration of their “stolen mandate.”

Ahsan Mehanti, Managing Director and CEO of Arif Habib Commodities, attributed the slump to political instability, concerns over foreign outflows, and weak global crude oil prices. “The bearish spell is also tied to consolidation ahead of the PSX futures contracts’ rollover,” he added.

Investors remain on edge, awaiting clarity on the political and economic front as the protests and market uncertainty persist.