Massive selling pressure was observed at the Pakistan Stock Exchange (PSX), with the benchmark KSE-100 Index shedding 5,150 points or 2.87% during trading on Monday. 

This was KSE-100’s third-largest day-to-day decline point-wise, said Al-Habib Capital Markets Limited, a subsidiary of Bank Al Habib Limited.

During trading, the benchmark index opened under pressure and quickly slipped below the 179,000 level, reflecting strong early selling.

Selling pressure intensified in the latter half as the index dropped below 176,000, further accelerating the decline.

Around the final hours of trading, the index attempted a nominal rebound after dropping to an intra-day low of 173,574.26, but the recovery remained shallow.

At close, the benchmark index settled at 174,453.93, a decrease of 5,149.80 points or 2.87%.

 “The sharp sell-off in the KSE-100 today has largely been driven by massive redemptions, with heavy selling pressure from a few large mutual funds acting as the primary trigger,” Waqas Ghani, Head of Research at JS Global, said.

Meanwhile, Saad Hanif, Head of Research at Ismail Iqbal Securities, attributed the decline to foreign selling.

Topline Securities said the steep drop was primarily driven by foreign outflows, as reflected in the previous session’s data.

 “Additionally, escalating political noise further dampened investor confidence, intensifying the bearish momentum.”

Index-heavy constituents — including Fauji Fertilizer Company, United Bank Limited, Engro Holdings, Habib Bank Limited, and Bank AL Habib Limited — emerged as the primary laggards, collectively eroding 1,680 points from the benchmark during the session, Topline said.

Federal Finance Minister Muhammad Aurangzeb on Monday said the government remained committed to accelerating the privatisation process, saying that more state-owned enterprises (SOEs) would be gradually privatised.

During the previous week, the PSX came under sustained selling pressure as heightened political uncertainty and deteriorating security conditions, particularly in Balochistan, undermined investor confidence, overshadowing otherwise supportive macroeconomic developments and strong external inflows. The KSE-100 Index closed the week at 179,603.73 points, registering a decline of 4,525.85 points or 2.5% week-on-week.