(Publish from Houston Texas USA)
(By Mian Iftikhar Ahmad)
Historic Crash in Pakistan Stock Exchange: KSE-100 Plunges 6,682 Points, Rs 713 Billion Wiped Out in Single Day
Faisalabad: Historic Crash in Pakistan Stock Exchange, Facts, Causes and Question of Responsibility. On 19 February 2026, the Pakistan Stock Exchange witnessed the largest single day decline in its history when the KSE-100 Index plunged by 6,682 points and closed at 172,170 points. During intraday trading, the index at one stage fell by more than 7,000 points, which triggered panic across the market. As a result, the overall market capitalization shrank by approximately Rs 713 billion in a single day, representing an extraordinary erosion of investor wealth. The decline began early in the trading session when strong selling pressure emerged from large institutional investors and certain foreign funds. Within the first few hours, the index dropped sharply, and panic selling by small investors further intensified the downward momentum. Major sectors including banking, oil and gas, cement, fertilizers, power and large industrial groups recorded significant losses, which pushed the benchmark index further down. The majority of listed companies closed in the red, while only a few managed marginal gains. Analysts suggest that multiple factors contributed to this sharp fall, including global financial uncertainty, profit taking by foreign investors and capital outflows, concerns regarding interest rates and macroeconomic policy direction, pressure on the current account and foreign exchange reserves, and speculation related to the IMF program. Some experts argue that the market had remained in a prolonged bullish phase in previous weeks, creating an overbought situation where even minor negative triggers could cause a major correction. Limited liquidity and relatively lower trading volumes also amplified volatility. As for responsibility, it would be inaccurate to attribute the crash to a single individual or institution because stock markets fundamentally operate on expectations, confidence and information flows. However, policy uncertainty, delays in economic decision making, inconsistent official statements and lack of timely regulatory clarity can weaken investor confidence and directly impact market stability. Simultaneous large scale selling by institutional players also accelerates declines. Therefore, this historic fall was not merely a one day event but the combined outcome of economic expectations, psychological reactions, global pressures and the domestic policy environment. The future direction of the market will largely depend on economic stabilization measures, clarity in financial policy, restoration of investor confidence and improvement in macroeconomic indicators.
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