On Monday, trading at the Pakistan Stock Exchange (PSX) stopped for an hour because the KSE-100 index dropped by over 8,000 points. Financial experts say this huge drop happened due to worries about a possible global recession.
When trading resumed after the break, the market fell by an additional 2,000 points, leading to an all-time high loss of 8,600 points in one day. The index ended the day at 114,909.48, a decline of 3,882.18 points or 3.27% from the previous closing.
Uzma Khan, a financial expert from Arif Habib Securities, explained that automatic circuit breakers are in place to help prevent panic selling. These break periods allow investors to pause and think during times of extreme market changes. She noted that many investors are anxious about a global recession, especially after the United States raised tariffs and other countries responded.
Before trading was stopped, the KSE-100 index had already dropped by 6,287.22 points, or 5.29%, by 11:58 am. When trading started again, the index dropped even further, going down by a total of 8,687.69 points, or 7.31%, to reach 110,103.97 by 1:15 pm. By 2:02 pm, the index was back up slightly to 113,154.63 but was still down by 5,637.03 points or 4.75% from the end of the last day.
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