News Topical, Digital Desk : On November 11, 2025, Pakistan's main stock market index, the KSE-100, saw a sharp decline. The index fell 2% to 158,548. Interestingly, the KSE-100 had gained more than 70% over the past year, but a sudden sell-off reversed the market's direction. Profit-booking, weak quarterly results, political instability, and heavy selling by foreign investors dampened the market sentiment. Investors are now cautiously awaiting data and policy signals. However, there are other major news items that have shaken the market. It is believed that investor fear has increased following the terrorist attacks. 30,000 crore Pakistani rupees have been lost.
Why did Pakistan's stock market crash? - These are the five major reasons for the decline.
1. Weak results from large corporates - Results of large companies were worse than expected.
Engro
Bank of Punjab (BOP)
Systems Ltd
UBL
MCB Bank.
The quarterly results of these companies turned market sentiment negative.
2. Concerns of an economic slowdown - Pakistan's macroeconomic situation remains weak
- Uncertainty over interest rates -
Rising inflation
- High foreign debt
- All these factors are weakening the market.
3. Political instability -
Local political developments and regime instability increased investor fears. As risk increased, investors fled to safer investments - resulting in a fall in the stock market.
3. Volatility and a decline in trading volume - Amid sharp fluctuations, market distribution increased, and the decline deepened. The index fell by 1.28% during the day.
4. FIIs also indicated a path to "exit" from Pakistan until November 2025. Heavy selling by foreign investors is also putting pressure on the market.
Which country did the maximum selling? Singapore's investment funds were the biggest sellers. After them - UAE funds - uneasy with political instability. USA's portfolio funds - reduced investment due to economic uncertainty. Some investors from Europe were also involved in the selling. This means that three major sources - Singapore, UAE, USA - are withdrawing money from Pakistan.
What does the data say? Decline in 1 day: 1.85% Change in 1 month: +0.07% Rise in 1 year: +70.07% This means that in the long term the market is still up, but in the short term the pressure has increased. The faster the rally, the sharper the fall. The reason for the fall in KSE-100 is not bad results or just FII selling, this fall is a sign of uncertainty.
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