The Pakistan Stock Exchange experienced a significant decline on Monday, with the benchmark KSE-100 index shedding more than 1,100 points. Analysts attribute this drop to the broader global market trends.

The KSE-100 index, which serves as the primary indicator of the Pakistani stock market, closed at 77,084.48 points, a decrease of 1.46% or 1,141.50 points from the previous trading session’s close.

The decline in the Pakistani stock market is seen as being in line with the global market trends, as investors react to the potential policy changes by the Bank of Japan and other central banks worldwide.

A total of 501,191,841 shares were traded during the day as compared to 443,483,358 shares the previous day, whereas the price of shares stood at Rs21.057 billion against Rs20.497 billion on the last trading day.

As many as 442 companies transacted their shares in the stock market, 129 of them recorded gains and 261 sustained losses, whereas the share price of 52 companies remained unchanged.

According to a report by Reuters, the recent policy meeting of the Bank of Japan’s board revealed that at least two of the nine members called for an early interest rate hike. This development signals a hawkish tilt in the central bank’s stance, which could pave the way for further rate increases in the future.

Analysts are closely monitoring the situation and the potential impact on the Pakistani economy and financial markets.

Stock markets tumbled with Japanese shares at one point exceeding their 1987 “Black Monday” loss, as fears of a US recession sent investors fleeing from risk while wagering that rate cuts would be needed to rescue growth.

The safe haven yen and Swiss franc surged, as crowded carry trades unravelled, sparking speculation that some investors were unloading profitable trades to get money to cover losses elsewhere. Such was the torrent of selling that circuit breakers were triggered on stock exchanges across Asia.

Japan’s benchmark Nikkei average (N225), opens new tab closed 12.40pc lower at 31,458.42, its largest one-day fall since October 1987, while the broader Topix (TOPX), opens new tab lost 12.48pc to 2,220.91.