Investors panic as PSX tanks 3600 points after Islamabad blast

KARACHI – Pakistan Stock Exchange (PSX) suffered nosedive of 3,667 points wiping out investor confidence and marking one of the steepest falls amid escalating geopolitical tensions and a growing sense of insecurity.

KSE-100 index closed at 157,870, as nervous investors rushed to sell their holdings. The stock market is grappling with unprecedented combination of political uncertainty and security threats. Adding fuel to fire, a day after the Senate passed the Constitution (Twenty-seventh Amendment) Bill, 2025.

Investor nerves were further frayed when a powerful blast struck outside the district and sessions court building in Islamabad’s G-11 area, sending shockwaves across the nation and triggering fears of further instability.

The market meltdown was apprently driven by security situation and escalating regional tensions.

Read more: PSX Issues New Guidelines for Opening Trading Accounts of Minors

Meanwhile, global markets offered a stark contrast: Asian stocks rose, the Nasdaq surged 2.3% recovering last week’s losses, and gold prices jumped amid U.S. government shutdown optimism. Yet, despite global positivity, Pakistan’s market remains in turmoil, a stark reminder of how domestic instability can overshadow international trends.