Karachi, January 29, 2026 — The Pakistan Stock Exchange (PSX) experienced a dramatic sell-off on Thursday, as the benchmark KSE-100 index suffered its largest single-day decline in history, shedding over 6,000 points amid escalating geopolitical uncertainty.
The index closed at 182,338 points, down 6,024 points or 3.21 percent from the previous session’s close of 188,380 points.
Trading opened on a weak note and remained under pressure throughout the session, with the index slipping steadily as investor sentiment deteriorated. Selling intensified in the early afternoon, pushing the index to an intraday low of 181,961 points before a mild rebound in the final hour helped trim some losses. Overall trading volume was robust at over 413 million shares, with a total market value exceeding Rs52.4 billion, highlighting the scale of the sell-off.
Analysts linked the sharp decline to rising tensions between the US and Iran and the surge in global oil prices, which have heightened market fears and reinforced expectations that any easing of interest rates may be delayed. Weak corporate earnings also contributed, with Fauji Fertilizers Limited reporting results below expectations, adding to market jitters.
In addition to geopolitical concerns, trade bodies voiced apprehension over the proposed India–European Union Free Trade Agreement (FTA), warning that it could negatively impact Pakistan’s textile and hosiery exports, potentially placing the country at a structural disadvantage despite its GSP+ status with the EU.
The combination of geopolitical uncertainty, rising commodity prices, and corporate underperformance has left investors cautious, with market experts predicting continued volatility in the near term.