PSX crashes nearly 2,400 points in early trading amid market volatility

KARACHI: Pakistan’s benchmark stock index, the KSE-100, opened sharply lower on Tuesday, shedding 2,383.82 points by 11:00 AM during early intraday trading.

The market saw significant swings, reaching a high of 169,237.51 points and dropping to 165,185.08 points before noon, reflecting heightened volatility. Among the most active stocks, Hascol Petroleum Limited led the declines, falling 6.88 per cent to Rs 16.10 on a volume of 25.4 million shares. Bank of Punjab dropped 5.50 per cent to Rs 28.53, while Worldcall Telecom Limited lost 1.51 per cent, closing at Rs 1.30, a report by DAWN News said.

This latest downturn comes on the back of recent sharp sell-offs, marking the third major slide at the Pakistan Stock Exchange in just two weeks. The KSE-100 plunged 5,149.80 points on February 16 and suffered its steepest single-day loss in history on February 19, dropping 6,683 points.

Market analysts described the market as being in a “correction mode,” attributing the decline to above-average foreign selling, Reko Diq-related concerns, weaker corporate results, and stock futures unwinding. However, he cautioned that this should not be viewed as a bearish trend, framing it instead as an 11 per cent market correction.

A securities trading company noted that investor sentiment will likely hinge on geopolitical developments and the upcoming IMF review mission, expected next week. Corporate earnings will also play a key role in shaping market direction.