Karachi Stock Exchange Crashes 8,000 Points Amid Global Market Turmoil:

The Karachi Stock Exchange (KSE) witnessed its steepest single-day decline in history, dropping a total of 8,429.49 points, or 7.1%, on the back of global market turmoil. The sharp slump led to a 45-minute market suspension, starting at 11:58 AM and resuming at 1:03 PM, according to a report by Dawn.

The KSE-100 index initially plunged by 6,287.22 points (5.29%), triggering an automatic halt as per Pakistan Stock Exchange (PSX) regulations. Following the resumption, the index lost another 2,000 points, closing at 110,362.17 from the previous session's close.

Global Tensions Drive Market Sell-Off
The crash comes in response to heightened global tensions after China imposed retaliatory tariffs on the United States. This sparked fears of a global economic slowdown, unsettling investors across emerging markets.

At 2:02 PM, the KSE-100 index showed a partial recovery, standing at 113,154.63, still down by 5,637.03 points or 4.75% from the last closing value.

Experts Cite Fear of Recession and Global Demand Weakness
Awais Ashraf, Director of Research at AKD Securities, explained that the plunge was driven by concerns that tariff hikes could trigger a global recession by reducing demand.

“We believe being an import-led economy … the imposition of US tariffs would benefit us due to a possible decline in global commodity prices,” he noted.

Mohammed Sohail, CEO of Topline Securities, confirmed the link between Pakistan’s stock market crash and broader global market declines.

“The market halted after a 5% fall around 12 PM to cool down the volatility,” he added.

Market Mechanism Activated as Protection Measure
In line with PSX protocols, a market halt was triggered after a 5% drop in the KSE-30 index from the previous trading session. A PSX notice clarified that all outstanding orders were automatically canceled by the trading system as part of the volatility control mechanism.