Islamabad, 8 May, 2025: PSX Halts trading temporarily after a severe downturn shook investor confidence on Thursday, as rising hostilities between India and Pakistan triggered panic across the financial markets.
The KSE-100 Index nosedived by more than 6,900 points during the morning session, marking one of the steepest intraday losses in recent times.
By midday, the benchmark index had dropped to 103,060 points, reflecting a decline of 6,942 points or 6.32%.
The market experienced widespread selling pressure, with key sectors such as banking, energy, construction, and fertilisers witnessing substantial losses.
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Stocks of major companies, including Hub Power Company (HUBCO), Mari Petroleum, Oil and Gas Development Company (OGDC), Pakistan Oilfields (POL), and United Bank Limited (UBL), all recorded significant negative movement, further dragging the index downward.
In response to the freefall, the PSX Halts mechanism was triggered to prevent further instability, enforcing a one-hour suspension in trading.
This pause was intended to provide investors with time to reassess the situation following unsettling reports of cross-border drone activity.
The volatility followed unconfirmed claims of Indian drone strikes, which amplified concerns among market participants and prompted swift liquidation of holdings.
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Commenting on the downturn, market analyst Mohammed Sohail noted that the index had already shed over 3.7% in the early stages of trading after initial news of the airspace violations emerged, underlining the sensitivity of investor sentiment to regional developments.
As authorities monitor the evolving security landscape, analysts expect short-term volatility to persist, with geopolitical risk continuing to influence market trends.
PSX Halts are rare but serve as a reminder of how non-economic events can heavily impact financial stability, especially in emerging markets like Pakistan.
