2 min read
Pakistan Stock Exchange (PSX) turned highly volatile on Monday as the benchmark KSE-100 Index plunged over 1,300 points, erasing early gains despite Pakistan’s ranking as the world’s top-performing stock market with nearly 200% gains over the past year. The sudden reversal reflected growing investor unease over economic signals and rising cost pressures.
On February 2, 2026, the KSE-100 initially advanced more than 600 points in early trading on selective buying. However, heavy profit-taking and broad-based selling quickly reversed sentiment, dragging the index down by 1,382 points to 182,792 by midday. Analysts termed the session one of the most unstable in recent weeks, highlighting fragile market confidence.
Investor sentiment weakened following the release of HBL Manufacturing PMI, which slipped to 51.8 in January, signaling a slowdown in industrial growth. Market participants cited rising electricity tariffs, ongoing load shedding, and pressure on exports due to U.S. trade tariffs as key factors dampening outlook for corporate earnings and economic momentum.
A senior market analyst noted, “The sharp intraday reversal reflects nervousness after a strong rally. Investors are reassessing valuations as macroeconomic risks resurface.” Sector-wide selling was observed as traders reduced exposure and locked in profits.
Despite short-term volatility, analysts say the broader trend remains under watch, with investors closely tracking policy direction, energy pricing, and upcoming economic data for clarity. Live index movements and stock updates remain available via the PSX data portal.
