Karachi, April 7, 2025 — The Pakistan Stock Exchange (PSX) suffered a major jolt on Monday as panic gripped investors, leading to a sharp crash in share prices and a temporary halt in trading activity.
The benchmark KSE-100 Index plunged by 5.29%, or 6,287 points, bringing the index down to 112,504 at 12:00 PM. This sharp fall triggered the PSX’s market-wide circuit breaker, suspending trading for 60 minutes in a bid to cool off the panic-driven selling.
The bloodbath at the PSX came just three days after the market closed at 118,792 points last Friday. The steep decline was triggered by a global market meltdown fueled by fears of a prolonged trade war and rising recession risks. The White House’s firm stance on new tariffs, along with President Trump’s refusal to strike a deal with China, rattled global sentiment. As a result, markets in Asia and beyond crashed — and the PSX was no exception.
Across-the-board selling dominated the PSX, with key sectors including cement, commercial banking, oil and gas exploration, refineries, oil marketing companies (OMCs), and power generation all seeing heavy losses. Index-heavy blue-chip stocks such as HUBCO, OGDC, PPL, HBL, ARL, and PSO plunged sharply, contributing significantly to the index’s fall.
“This is a classic market panic triggered by external shocks,” said Mohammed Sohail, CEO of Topline Securities. “The Pakistani market is down over 3,000 points just in intra-day trading — this reflects the scale of fear among investors.”
Ironically, the crash comes on the heels of a positive week for the PSX. Just last week, the index gained 984 points, or 0.84%, supported by improved macroeconomic indicators and investor optimism. However, the situation turned abruptly due to international factors.
With the PSX now in correction territory, market participants are bracing for continued volatility. Experts suggest that unless global trade tensions ease or some economic clarity emerges, the PSX could see further pressure in the days ahead. Investor confidence remains fragile, and the next few sessions will be critical in determining the short-term direction of the market.