‘Panic Selling’ Hits PSX as Market Plunges Over 15,000 Points

Monday, March 2, 2026 – The Pakistan Stock Exchange (PSX) witnessed one of its sharpest single-day declines as the benchmark index dropped more than 15,000 points amid rising geopolitical tensions linked to the US-Iran conflict.

The market opened deep in the red at the start of the trading week. Heavy selling pressure continued within minutes of the opening bell.

KSE-100 Index Falls Nearly 9%

The benchmark KSE-100 Index fell to 152,991.15 points. This marked a decline of 15,071.01 points, or 8.97 percent, compared to the previous close of 168,062.16 points.

Investors rushed to offload shares as uncertainty gripped financial markets across the region. Global equity markets have also shown volatility due to escalating tensions in the Middle East.

Analysts Blame Panic and Leverage

Market experts described the situation as “panic selling.”

Mohammed Sohail, CEO of Topline Securities, said that heavy leveraged positions intensified the fall. He added that concerns related to Iran and Afghanistan further increased pressure on investor sentiment.

According to analysts, margin calls forced many investors to sell holdings quickly. This added fuel to the market decline.

Trading Halted for 45 Minutes

Following the sharp drop, trading was temporarily suspended for 45 minutes under market regulations. The pause was aimed at stabilizing conditions and preventing further panic-driven losses.

Trading was scheduled to resume at 10:27am after the cooling-off period.

Broader Market Impact

Financial experts say geopolitical uncertainty often triggers sudden capital outflows from emerging markets. Investors typically move funds to safer assets during times of crisis.

If tensions continue, volatility may persist in the coming sessions. Market participants are closely watching international developments and currency movements for further direction.

Authorities and regulators are monitoring the situation to ensure orderly market operations.