Karachi, April 7, 2025 — The Pakistan Stock Exchange (PSX) officially triggered a market halt on Monday after the KSE-100 Index fell by more than 5%, sparking a wave of concern across financial circles.
Trading was suspended at approximately 11:58 AM after the benchmark index plummeted by 6,287 points or 5.29%, bringing it down to 112,504 from the previous close of 118,792 points on Friday.
In a formal communication to all Trading Right Entitlement (TRE) Certificate Holders, the PSX confirmed that the market halt was triggered in accordance with PSX Regulations due to a 5% drop in the KSE-30 Index. As a result, all equity and equity-based markets were immediately suspended. Additionally, all outstanding orders were automatically cancelled by the system.
According to the PSX notification, the market schedule following the halt was as follows:
• Market Halt Time: 11:58:45 AM
• Pre-Open Time: 12:58:45 PM
• Market Reopen Time: 01:03:45 PM
This unexpected halt came in the wake of global financial turmoil, with international markets spiraling downward due to fears of a prolonged trade war and recession. The U.S. administration’s hardline stance on tariffs and President Trump’s refusal to compromise on trade with China added fuel to the fire. Markets across Asia tumbled, and the PSX was no exception.
The PSX saw widespread selling across key sectors such as cement, oil and gas exploration, commercial banking, refineries, oil marketing companies (OMCs), and power generation. Major blue-chip stocks including HUBCO, OGDC, PPL, PSO, ARL, and HBL were deep in the red, contributing to the massive index drop.
Mohammed Sohail, CEO of Topline Securities, remarked, “This is a textbook example of market panic driven by external economic shocks. A drop of over 3,000 points within intra-day trading reflects the severity of investor concerns.”
Ironically, the PSX had shown signs of recovery just last week, gaining 984 points as investor sentiment improved on positive economic news. However, the global downturn abruptly reversed this momentum.
With the PSX now in correction territory, the next few sessions will be closely watched. Analysts warn that without clarity on international trade policies and economic direction, the PSX may continue to experience heightened volatility. Investor confidence remains shaky, making the immediate outlook uncertain.