KARACHI—Pakistan’s equity market tumbled sharply on Thursday, with the KSE-100 index falling over 2,500 points as investors reacted negatively to the effects of a new super tax and disappointing corporate results, market sources reported. The extended downturn from recent sessions snapped further as panic selling gripped traders and sentiment weakened across major sectors.

The painful session saw the benchmark index slip to an intraday low more than 4,000 points below 179,000, though late-day buying helped it close above the 180,000 level, trimming some losses. Overall, investors lost over Rs271 billion in market capitalisation in a single session.

Market analysts said the rout was triggered in part by Engro Fertiliser’s disappointing quarterly results—which included a significant Rs2 billion super tax charge—that eroded profit expectations and dampened dividend prospects.

Negative sentiment was broad-based, with energy and banking stocks among the biggest drags, while trading volumes remained high, indicating investors rushed to exit amid rising uncertainty.