Karachi, April 7, 2025: The Pakistan Stock Exchange (PSX) witnessed a dramatic sell-off on Monday, losing nearly 3,900 points as global market turmoil and domestic economic uncertainties rattled investor confidence. The downturn was fueled by escalating trade tensions between the United States and China, which triggered panic across Asian markets.
The benchmark KSE-100 index fell by 3,882.18 points, or 3.27%, closing at 114,909.48. During the session, the index plunged to an intraday low of 110,103.97 — a staggering 7.31% drop — before recovering some ground. At its highest point of the day, the index reached 117,601.62, still marking a 1% decline from the previous close of 118,791.66.
A market-wide circuit breaker was triggered when the index tumbled more than 5%, prompting a temporary suspension of trading. The PSX resumed operations at 1:03 PM after cancelling all pending orders. Despite the pause, bearish sentiment persisted, dragging the market lower through the remainder of the session.
Global market rout sparks panic
The dramatic fall in Pakistani equities coincided with a broader collapse in global markets. Investor sentiment turned sharply negative after China announced sweeping retaliatory tariffs of 34% on all US goods. This move came in response to US President Donald Trump’s abrupt hike in trade duties, reigniting fears of a prolonged trade war between the world’s two largest economies.
Asian markets nosedive
The impact of the escalating tariff conflict reverberated across Asia. Japan’s Nikkei plummeted over 8% after the open, with the Topix shedding more than 6.5%. In China, the Shanghai Composite Index dropped 6.7%, while the CSI300 lost 7.5%. Hong Kong’s Hang Seng Index opened over 9% lower, dragged down by major losses in tech giants like Alibaba and Tencent.
South Korea’s Kospi fell over 4.8%, triggering a trading halt through a circuit breaker. Taiwan’s Taiex plunged 9.7%, with market heavyweights TSMC and Foxconn both sliding around 10% and halting trading. Australia’s ASX 200 fell as much as 6.3%, while New Zealand’s NZX 50 ended the day down 3.7%.
The PSX’s sharp decline reflects both the intensifying global economic conflict and persistent domestic concerns over Pakistan’s macroeconomic outlook. With investor confidence shaken and global volatility expected to persist, market watchers anticipate continued turbulence in the days ahead.
