By Digital Spartans 
The Pakistan Stock Exchange witnessed one of its most severe downturns in recent history on Thursday, as heavy selling pressure gripped the market amid rising global and domestic uncertainties. The benchmark KSE-100 Index plunged by more than 6,000 points in a single trading session, reflecting widespread investor panic and a sharp shift toward risk aversion.
By the close of trading, the KSE-100 Index had fallen 6,042 points to settle at 182,338 points. During the session, the market lost six major psychological levels in quick succession, including 188,000, 187,000, 186,000, 185,000, 184,000, and 183,000 points. This rapid erosion of key support levels underscored the intensity of the sell-off and the fragile sentiment prevailing at the bourse.
Market participants attributed the sharp decline to a combination of local and international factors. According to brokers, disappointing financial results from Fauji Fertilizer Company added to investor concerns, while escalating geopolitical tensions between the United States and Iran further rattled confidence. The situation was compounded by uncertainty surrounding regional stability and its potential economic implications.
Additional pressure came from domestic policy-related issues. The imposition of a super tax, along with the State Bank of Pakistan’s decision to keep interest rates unchanged, dampened investor expectations. The ongoing rollover week also contributed to volatility, as traders adjusted positions amid tightening liquidity and heightened risk.
The scale of Thursday’s decline was particularly striking when compared to the previous session. On Wednesday, the KSE-100 Index had closed at 188,380.39 points, posting a modest gain of 177.53 points, or 0.09 percent. The sharp reversal highlighted how quickly sentiment shifted in response to emerging risks.
Global market conditions offered little support. Asian stock markets showed signs of stagnation as mixed performances in the technology sector made investors cautious ahead of key earnings announcements, including results from Apple. Despite verbal reassurances from US and European officials, uncertainty continued to weigh on global financial markets, while the US dollar also appeared unstable.
Meanwhile, international commodity markets reflected growing risk aversion. Gold and silver prices surged to record highs as investors moved funds toward safe-haven assets. Oil prices climbed to a four-month high after renewed warnings of possible military action against Iran if nuclear negotiations fail, adding to inflationary and geopolitical concerns worldwide.
Analysts believe the sharp fall at the PSX reflects broader anxiety over global tensions, domestic fiscal pressures, and weak corporate performance. In the short term, market volatility is expected to remain high, with investors closely watching geopolitical developments, monetary policy signals, and upcoming corporate earnings for direction.
The historic sell-off serves as a reminder of the PSX’s sensitivity to both internal economic decisions and global political developments, reinforcing the need for cautious trading and risk management in uncertain times.