PSX Meltdown: KSE-100 Index Crashes 6,000 Points Amid Mutual Fund Selling & Political Turmoil. -

On February 16, 2026, the Pakistan Stock Exchange (PSX) experienced a severe market rout, with the benchmark KSE-100 index crashing by over 6,000 points during intraday trading. The index plunged to a low of 173,574.26 before recovering slightly to close at 174,453.93, a net daily loss of approximately 5,150 points or 2.87%.

Key Factors Behind the Market Crash

Institutional Selling: A primary trigger for the collapse was aggressive broad-based selling by mutual funds, driven by heavy redemptions and year-end portfolio adjustments.
Political & Security Concerns: Deepening political uncertainty and deteriorating security conditions, particularly in Balochistan, significantly damaged investor confidence.
Disappointing Corporate Results: The ongoing earnings season saw several corporate giants report results that fell short of market expectations, leading to panic selling.
Economic Pressures: Persistent macroeconomic challenges, including high business costs from elevated energy tariffs, core inflation, and a widening current account deficit, weighed heavily on the market.
Widespread Sector Losses: The downturn was felt across all major sectors, including Banking, Oil & Gas, Cement, and Technology.

Major Losers and Market Impact

Prominent Declining Stocks: Heavyweights such as Fauji Fertilizer (FFC), United Bank (UBL), OGDC, PPL, and Hub Power (HUBC) were major contributors to the index’s decline.
Eroded Capitalization: The single-session rout resulted in a massive loss of billions in market capitalization, following a similarly volatile week where the index had already shed over 4,500 points.
Shift to Safe Havens: Analysts noted a tactical reallocation of capital by investors away from equities toward safe-haven assets like gold, which surged to record highs amid the volatility.