KARACHI: The Pakistan Stock Exchange (PSX) experienced a dramatic plunge on Monday, with the benchmark KSE-100 Index dropping nearly 8,700 points, marking the largest-ever intraday decline in terms of points.

The index fell to an intra-day low of 110,103.97 by 1:10pm, driven by global market turmoil following US President Donald Trump's announcement of reciprocal tariffs on over 180 countries, including Pakistan. Despite the sharp downturn, the market staged a partial recovery by 3:30pm, with the KSE-100 Index settling at 114,909.48, down 3,882.18 points or 3.27%. The selling pressure was widespread, affecting key sectors like cement, commercial banks, oil and gas, and power generation companies.

Major index-heavy stocks, including HUBCO, OGDC, and HBL, saw significant losses. The market halt was triggered when the KSE-30 Index dropped by 5%, suspending trading for an hour from 11:58am to 12:58pm. During this time, all outstanding orders were canceled automatically. The selloff was attributed to the ripple effects of Trump's tariffs and a decline in global oil prices. 

However, experts, including Sana Tawfik, Head of Research at AHL, suggested that the selling pressure may be short-lived, with investor sentiment expected to improve during the upcoming earnings season. Despite the sharp drop, the PSX had posted gains the previous week, with the KSE-100 Index rising 984 points, or 0.84%, closing at 118,791 points. Globally, major stock markets suffered as concerns grew over the impact of tariffs on economic growth. US and European markets faced significant losses, while Asian indices also saw sharp declines. Oil prices fell further, with Brent crude dropping to $64.23 per barrel.

Meanwhile, the Pakistani rupee depreciated slightly by 0.04% against the US dollar, closing at 280.57. Trading volume on the all-share index increased to 710.79 million shares, up from 553.67 million in the previous session.