PSX faces unprecedented meltdown after Pakistan downs 25 Indian drones

KARACHI: The Pakistan Stock Exchange (PSX) faced an unprecedented meltdown on Thursday as the KSE-100 Index plunged by 6,482 points or (-5.89%) closing at 103,527 level — marking the largest single day decline in the Index’s history.

Investor sentiment remained deeply shaken throughout the session, which saw extreme volatility. The KSE-100 recorded its highest-ever intraday movement of 10,282 points, swinging from an intraday high of 1,872 points to an intraday low of 8,410 points, said Ismail Iqbal Securities.

“The market crash followed alarming geopolitical developments after the ISPR Director General Lt Gen Ahmed Sharif Chaudhry announced that Pakistani forces had neutralized 25 drones,” Topline Securities stated. 

DG ISPR, also confirmed that four army personnel were injured after one drone managed to partially strike a military target, despite the majority being intercepted, it added.

The statement sent shockwaves through financial markets, triggering widespread panic selling amid fears of escalating cross-border hostilities. Investors rushed to offload positions, leading to a broad-based decline across sectors, it added.

The session initially opened with a cautious optimism on hopes of de-escalation, but investors sentiment deteriorated rapidly as reports surfaced of multiple Indian drones being shot down across various regions, stoking fears of further escalation and driving a sharp market sell-off, stated Al Habib Capital.

Amid the sharp sell-off, trading was temporarily halted for one hour after the KSE-30 dropped more than 5% for five consecutive minutes, activating the market’s circuit breaker mechanism.

The largest drag on the benchmark Index came from FFC, MARI, UBL, OGDC, and PPL, which collectively eroded 2,051 points from the KSE-100.

Total traded volume stood at 651 million shares, with a traded value of PKR 35.40 billion. WTL led the volumes chart with 93.2 million shares traded.