Historic Plunge: PSX Faces Record Decline Amid Global Recession Fears

The Pakistan Stock Exchange witnessed a dramatic drop as the KSE-100 index fell over 8,000 points due to global recession fears. Despite a brief suspension in trading, the index continued to plummet, ultimately closing with a significant loss. Analysts cite international trade tensions as a key factor.

Trading on the Pakistan Stock Exchange (PSX) was temporarily suspended following a dramatic drop of over 8,000 points in the benchmark KSE-100 index on Monday. This significant decline mirrors widespread fears of a looming global recession.

According to financial analysts, the index continued its downward trajectory even after a mandated one-hour cooling-off period. The PSX lost an additional 2,000 points upon resumption of trading, marking a historical one-day loss of 8,600 points in intraday trade.

Financial strategist Uzma Khan from Arif Habib Securities attributes the drastic decline to escalating trade tensions, specifically tariffs imposed by the United States and subsequent retaliatory moves by other major economies. She emphasized the role of automatic circuit breakers in mitigating excessive panic selling.

(With inputs from agencies.)