RECORDER REPORT

KARACHI: The Pakistan Stock Exchange (PSX) suffered an unprecedented meltdown on Thursday, recording the largest single-day decline in its history amid escalating tensions and war threats between Pakistan and India. The benchmark KSE-100 Index plummeted by a record 6,482.21 points, or 5.89 percent, closing at 103,527 on Thursday down from 110,009 on Wednesday. The market opened on a positive note, gaining nearly 1,872 points amid hopes that tensions might ease. However, investor sentiment quickly reversed following sudden reports that Pakistani forces had neutralized over two dozen Indian drones within Pakistani territory, triggering a sharp downturn and pushing the market into negative territory.

In accordance with PSX regulations, a market halt was triggered after the KSE-30 Index fell by 5 percent from its previous closing level. Consequently, all equity and equity-based markets were suspended, and the system automatically cancelled all outstanding orders. The trading halt for one hour began at 12:34:15 PM, and the market resumed operations at 1:34:15 PM.

Due to a 5 percent decrease in the KSE-30 index from the previous trading day close of the index, a market halt was triggered as per PSX Regulations and all equity and equity-based markets were suspended accordingly. As a result of the halt, all outstanding orders have been cancelled automatically by the system. The market halt time started at 12:34:15 pm and market was open at 13:39:15 pm.

On Thursday, BRIndex100 opened at 11,679.59 points and finally closed at 10,856.18 which was 823.41 points or 7.05 percent lower than previous close. Total volume at BRIndex100 was 568.384 million shares. BRIndex30 also declined by 2,837 points or 8.45 percent to close at 30,733.86 points with a total volume of 397.557 million shares.

Analysts at Topline Research said 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.

They said that the market crash followed alarming geopolitical developments after ISPR Director General Lt Gen Ahmed Sharif Chaudhry announced that Pakistani forces had neutralized 25 drones sent by India since last night. He also confirmed that four army personnel were injured after one drone managed to partially strike a military target, despite the majority being intercepted.

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, they added.

Amid the sharp sell-off, trading was temporarily halted for one hour after the KSE-30 Index dropped more than 5 percent 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.

The total traded value on the ready counter surged to Rs 35.44 billion compared to Rs 30 billion in the previous session. The market capitalization decreased by Rs 819 billion to Rs 12.525 trillion. Out of 450 active scrips, 35 closed in positive and 373 in negative while the value of 42 stocks remained unchanged.

WorldCall Telecom was the volume leader with 93.2 million shares and closed at Rs 1.10 followed by Kohinoor Spinning that closed at Rs 3.94 with 28.4 million shares. K-Electric Ltd. ranked third with share trading of 27 million shares and it closed at Rs 3.92.

PIA Holding Company LimitedB and Khyber Textile Mills Limited the top gainers increasing by Rs 639.28 and Rs 60.73 respectively to close at Rs 7,032.03 and Rs 668.07, while Unilever Pakistan Foods Limited and Rafhan Maize Products Company Limited were the top losers declining by Rs 450.54 and Rs 172.44 respectively to close at Rs 22,080.75 and Rs 8,652.00.

Analysts said that saw this downward move after looking some drone attack on various cities of Pakistan which resultant panic in PSX which was down by almost 6 percent. Major sector was OIL and Gas Exploration and banking sector which combine added 2300 points however cement sector also added 700points to this overall downward move.

BR Automobile Assembler Index closed at 20,098.78 points, registering a net decline of 1,312.82 points or 6.13 percent, with a total turnover of 6.65 million shares.BR Cement Index settled at 8,489.54 points, down by 654.79 points or 7.16 percent, on a total turnover of 77.149 million shares.

BR Commercial Banks Index ended the day at 30,876.95 points, posting a loss of 1,408.08 points or 4.36 percent, with 66.151 million shares traded.BR Power Generation & Distribution Index closed at 17,409 points, dropping 910.87 points or 4.97 percent, on a turnover of 42.187 million shares.

BR Oil & Gas Index recorded a sharp decline, closing at 9,766.84 points, down 927.32 points or 8.67 percent, with a total turnover of 70.515 million shares.BR Technology & Communication Index finished at 4,246.87 points, falling 326.02 points or 7.13 percent, with a turnover of 127.261 million shares.

Ahsan Mehanti of Arif Habib Corp said stocks witnessed largest decline in history across-the-board amid fears over tensions and escalation between Pak-India after security unrest on Pak India surgical strikes. Weak rupee, economic uncertainty and falling Pak dollar bonds played catalyst role in record bearish close, he added.