PSX Tumbles Nearly 2,000 Points as Political Tensions Rattle Investors
The Pakistan Stock Exchange (PSX) came under heavy selling pressure on Monday, with the benchmark KSE-100 index tumbling nearly 2,000 points by midday as renewed political tensions at home weighed on investor sentiment, while falling international oil prices offered little relief.
The benchmark stood at 166,278.52 at 12:28pm, down 1,876.97 points, or 1.12 per cent, from the previous close of 168,155.49. The index had earlier hit an intraday low of 166,167.79, losing 1,987.70 points, or 1.18 per cent, while its high stood at 167,918.36. These were midday figures; the market had not closed at the time the fall was reported.
Why the PSX tumbles: talks collapse rattles investors
The sell-off came amid heightened domestic political anxiety after government-Pakistan Tehreek-e-Insaf talks collapsed without a breakthrough, with the PTI pressing ahead with its march towards Islamabad. Differences over counterterrorism policy and access to jailed PTI founder Imran Khan remained among the key sticking points, deepening concerns over renewed political confrontation and possible disruption.
Selling was evident from the opening bell, with the index shedding more than 1,600 points in the opening minutes. By 9:43am, it had fallen to 167,606.83, down 548.66 points, or 0.33 per cent, before losses accelerated as trading progressed.
The market remained volatile as investors weighed the domestic political standoff against developments in international oil markets. Crude prices fell on Monday as rising Middle East exports and the planned release of oil stocks by G7 nations boosted supply prospects, offsetting concerns over further damage to Gulf oil infrastructure as the US-Israeli war on Iran drags on.
The decline in oil prices, which could otherwise ease pressure on Pakistan’s external account and inflation outlook, failed to offset the immediate impact of heightened domestic uncertainty on risk appetite.
Trading activity remained active, with 72.4 million shares changing hands and traded value reaching Rs4.55 billion by midday.
What to watch in the afternoon session
Analysts will watch whether the index can recover some ground in the afternoon session or whether political headlines keep sellers in control. The PTI convoy’s progress towards Kohat and any fresh statements from the government or opposition are likely to set the tone for the rest of the day.
A sustained slide would add to the pressure on an index that had already been weighed down by geopolitical concerns in recent sessions. For now, the market’s direction hinges less on corporate earnings or economic data and more on how the political standoff unfolds.
How far did the KSE-100 fall on Monday?
The benchmark KSE-100 index fell 1,876.97 points to 166,278.52 by 12:28pm on Monday, October 5. It touched an intraday low of 166,167.79, a drop of 1,987.70 points from the previous close of 168,155.49. These were midday figures, not the final close.
What caused the PSX sell-off?
Heightened domestic political anxiety drove the selling. Government-PTI talks collapsed without a breakthrough over the weekend, and the PTI pressed ahead with its long march, raising fears of renewed political confrontation. Differences over counterterrorism policy and access to jailed PTI founder Imran Khan remained key sticking points.
How did international oil prices move?
Crude prices fell on Monday as rising Middle East exports and planned G7 oil stock releases boosted supply prospects. The drop could ease pressure on Pakistan’s external account and inflation outlook, but it failed to offset the immediate drag of domestic political uncertainty on investor risk appetite.
How active was trading during the fall?
Trading remained active despite the sell-off. By midday, 72.4 million shares had changed hands, with traded value reaching Rs4.55 billion, indicating broad-based participation in the session rather than a thin, panic-driven slide.
