What happened
The benchmark KSE-100 index of the Pakistan Stock Exchange fell 5,405.48 points, or 3.41 per cent, to close at 152,907.97 on Thursday, snapping a two-session recovery rally as investors sold into renewed Middle East war fears and rising oil prices. The loss wiped more than Rs534 billion from market capitalisation in a single session, Dawn reported.
The fall was broad. According to Associated Press of Pakistan data, 356 of 484 active companies in the ready market declined, 71 advanced and 57 were unchanged. Ready-market turnover was 521.631 million shares worth Rs27.138 billion, down from 612.361 million shares worth Rs34.597 billion a day earlier, and total market capitalisation slipped to about Rs17.049 trillion from Rs17.584 trillion. K-Electric topped the volume chart with 96.740 million shares, followed by First National Equities and Unity Foods.
Why it matters
Traders attributed the sell-off to fading optimism over a swift end to the US-Israel war with Iran after Tehran rejected a reported 15-point US framework, which pushed crude prices higher and darkened the outlook for import-dependent Pakistan. Ali Najib, Deputy Head of Trading at Arif Habib Ltd, told Dawn that sentiment stayed subdued through the session as both Washington and Tehran held to preconditions before any ceasefire, undercutting the diplomacy Pakistan has helped broker.
Dawn reported that index-heavy counters — including United Bank Ltd, Fauji Fertiliser Company, Engro Holdings, Lucky Cement, Hub Power Company, Pakistan Petroleum Ltd, Habib Bank Ltd, Meezan Bank Ltd and National Bank of Pakistan — together dragged the index down by 3,033 points. On the positive side, Oil and Gas Development Company Ltd announced a gas discovery at the Sahito-1 well in Khairpur, Sindh, which tested at 17.2 million cubic feet per day with the company holding a 95 per cent working interest.
Investors were also cautious ahead of a Pakistan Investment Bonds auction, with speculation that cut-off yields could rise after an upward adjustment in secondary-market yields. Topline Securities noted the market traded in negative territory for most of the day.
What is still uncertain
It remains to be seen whether the KSE-100 can recover the lost ground or whether the Middle East conflict and volatile international oil prices will keep driving sentiment in the sessions ahead. Analysts quoted by Dawn said developments in the region would remain the key near-term driver of the index.
Sources & reporting notes
This is a synthesis of published material, not eyewitness reporting. Sources were reviewed on 2026-03-28.
- Dawn — PSX tumbles 5,405 points as panic returnsPublished 27 March 2026 · Muhammad Kashif's Karachi report on the session, the Rs534bn market-cap loss and the index-heavy decliners.
- Associated Press of Pakistan — PSX turns bearish, loses 5,405 pointsPublished 26 March 2026 · Carries the PSX session data on closing level, volume, advances and declines.
- Business Recorder — Stocks nosedive, KSE-100 sheds 3.4% amid rising Middle East tensionsPublished 26 March 2026 · Reports the close below 153,000 and the Iran ceasefire-rejection backdrop.
