March 02, 2026 (MLN): The KSE-100 Index witnessed a historic collapse on Monday, as intensifying geopolitical tensions and deepening uncertainty triggered panic selling across the board, pushing the market into crisis territory.

The benchmark index closed at 151,972.99, plunging 16,089.17 points or 9.57% in a single session.

The index traded within a wide range of 7,580.63 points, recording an intraday high of 159,328.59 (-8,733.57 points) and falling to a low of 151,747.96 (-16,314.20 points), reflecting extreme volatility throughout the session.

Total trading volume of the KSE-100 Index surged to 479.70 million shares.

Earlier in the day, the Pakistan Stock Exchange (PSX) temporarily equity trading after the KSE-30 Index dropped 5% from the previous session’s close, triggering mandatory volatility controls.

The dramatic sell-off comes amid escalating hostilities on the western border, with the government describing the situation with Afghanistan as tantamount to an “open war.” Investors are grappling with the implications of a prolonged conflict, including its fiscal and economic toll on an already fragile recovery. The sharp deterioration in the security environment has effectively frozen domestic risk appetite, sparking widespread liquidation.

Technically, the market has shifted from correction to crisis mode, as the situation in the Middle East worsen on USA-Iran conflict.

The KSE-100 has now fallen nearly from its record high of 189,166.83 set in January 2026, edging dangerously close to the 20% threshold commonly associated with a formal bear market. The speed and magnitude of the decline have severely shaken investor confidence.

Market breadth reflected overwhelming bearishness. Of the 100 index companies, only 1 closed higher, 98 declined, and 1 remained unchanged.

Top losers during the day were YOUW (-20.52%), CNERGY (-14.08%), KEL (-12.53%), UNITY (-10.03%), and PIBTL (-10.01%).

On the other hand, JDWS (+0.84%) was the lone notable gainer, while IBFL (+0.00%) remained flat. MUREB (-3.48%), NESTLE (-4.15%), and POL (-4.19%) also featured among relatively lesser declines compared to the broader market rout.

In terms of index-point contribution, the heaviest drags were FFC (-1,595.54pts), UBL (-1,301.04pts), ENGROH (-886.37pts), HUBC (-718.26pts), and MEBL (-681.61pts).

Meanwhile, only marginal support came from JDWS (+2.20pts) and IBFL (+0.00pts), while PGLC (-0.46pts), BNWM (-0.99pts), and YOUW (-2.38pts) had negligible impact relative to the scale of losses.

Sector-wise, the KSE-100 Index was battered by Commercial Banks (-5,031.81pts), Fertilizer (-2,192.22pts), Oil & Gas Exploration Companies (-1,715.57pts), Cement (-1,428.11pts), and Investment Banks/Investment Companies/Securities Companies (-982.42pts).

Limited support was visible in Sugar & Allied Industries (+2.20pts), while Synthetic & Rayon (+0.00pts), Leasing Companies (-0.46pts), Woollen (-0.99pts), and Textile Weaving (-2.38pts) showed minimal movement.

In the broader market, the All-Share Index closed at 91,178.85, recording a staggering loss of 9,239.97 points or 9.20%.

Total market volume jumped to 809.55 million shares compared to 536.24 million in the previous session, while traded value surged by Rs22.97 billion to Rs48.51 billion, indicating heavy liquidation and forced selling.

A total of 371,728 trades were reported in 483 companies, with only 21 closing higher, 413 declining, and 49 remaining unchanged, underscoring the scale of capitulation across the market as investors rushed to exit positions amid escalating uncertainty.

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