Pakistan’s KSE-100 Index Plummets Amid Geopolitical Tensions and Oil Price Surge

Pakistan’s benchmark KSE-100 index experienced a significant downturn on Monday, March 9, 2026, triggered by escalating geopolitical tensions and a surge in global oil prices. Trading was temporarily halted after the index fell sharply, reflecting heightened investor concerns.

Market Halt and Initial Decline

Trading on the Pakistan Stock Exchange (PSX) was initially halted around 9:20 am local time after the KSE-100 index dropped 9,780.15 points. A broader market suspension was triggered when the KSE-30 index fell by 5% from the previous day’s close, in accordance with PSX regulations [PSX]. The index was halted at 147,715.95 points, nearing its intraday low of 147,710.26 points.

Recovery and Final Losses

Following the halt, the market partially recovered. By 12:25 pm, the KSE-100 index had reduced some of its losses, but still closed down 10,073.85 points. The index ultimately closed at 146,178.44, representing a decline of 11,317.66 points, or 7.74% [PSX].

Contributing Factors

The sell-off is largely attributed to rising geopolitical tensions and a substantial increase in global oil prices. Reuters reported that oil prices surged around 25% on Monday to their highest levels since mid-2022 [Reuters]. Brent crude is on track for a record one-day gain, while gold prices have fallen by 2% as energy supplies face increased pressure.

Government Response

In response to the global fuel crisis, Prime Minister Shehbaz Sharif is expected to announce an austerity plan on Monday. This follows a recent government decision to increase petrol and high-speed diesel prices by Rs55 per litre, the largest hike in the country’s history, reflecting the initial economic impacts of the regional conflict.

Broader Market Performance

The downturn affected broader market indices as well. The KSE All Share Index fell by 6.76%, the KSE-30 index by 7.72%, and the KMI-30 index by 7.43% [PSX]. Market volume reached 526,935,396 shares, with a total value of PKR 31,726,638,018 and 282,064 trades [PSX].

Historical Context

The KSE-100 Index was launched in November 1991 and serves as a benchmark for stock prices on the Pakistan Stock Exchange (PSX) [Wikipedia]. The index experienced significant growth in 2001, becoming the highest-performing stock market globally, but has been subject to volatility due to geopolitical events and macroeconomic factors [Wikipedia]. In 2007, the index reached a record high of 14,814 points before a subsequent decline [Wikipedia].