Pakistan’s equity market experienced a sharp downturn on Monday, erasing last week’s gains and sending the KSE-100 Index into negative territory. The benchmark index dropped by 5,478 points, or 3.16%, closing at 167,691 points.

During intraday trading, the index briefly dipped even further, losing 6,283 points (-3.63%) to touch a low of 166,886. The sudden sell-off reflects ongoing investor caution amid economic uncertainties and market volatility.

Analysts cite multiple factors contributing to the decline, including foreign capital outflows, macroeconomic pressures, and uncertainty over upcoming policy measures. Sectoral performance also showed mixed results, with heavyweights in banking, oil, and cement leading the downward momentum.

The sharp fall comes after a period of tentative recovery, highlighting the fragile sentiment among domestic and international investors. Market participants are closely monitoring government announcements and global cues for signs of stabilization.

Despite the steep loss, some experts suggest that the current levels may present buying opportunities for long-term investors, though caution remains key given prevailing economic challenges.

By Digital Spartans

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