The benchmark KSE-100 index at the Pakistan Stock Exchange (PSX) dropped by more than 1,000 points during a volatile trading session, reflecting investor concerns over rising fuel prices and economic uncertainty. The index fell around 1,015 points in early trading, with declining stocks significantly outnumbering gainers.

Market sentiment remained under pressure after the government increased petrol and diesel prices in line with IMF-linked commitments, triggering panic selling at the start of the session. The index opened sharply lower, plunging nearly 3,000 points before recovering some losses later in the day.

Despite the downturn, trading activity stayed relatively strong, with millions of shares exchanged and key stocks such as K-Electric, Cnergy, and Bank of Punjab leading volumes.

Analysts noted that while the fuel price hike sparked immediate negative sentiment, some of the impact had already been priced into the market, helping limit deeper losses. Support from oil, gas, and banking stocks also aided the partial recovery.

The recent drop highlights ongoing volatility at the PSX, as investors react to inflation concerns, policy changes, and broader economic pressures affecting Pakistan’s financial outlook.