KSE-100 Falls 881 Points on Budget Concerns

Karachi, May 26 — The Pakistan Stock Exchange (PSX) plunged into deep red on Monday, with the benchmark KSE-100 Index crashing by 881.55 points, or 0.74%, to close at 118,221.12, as federal budget fears loomed large. Investor sentiment buckled under relentless pressure, fueled by fiscal uncertainty over potential tax measures in the Fiscal Year 2026 budget, set for June 10. The market opened bearish, shedding 500 points early, and by 12:25 PM, the index had plummeted 929 points to 118,173.4, driven by broad-based selling.

Key sectors suffered heavily, with heavyweights like HUBCO, OGDC, PPL, POL, MARI, PSO, and SSGC bleeding red, alongside automobile assemblers, oil and gas exploration firms, oil marketing companies (OMCs), and power generation stocks. This decline follows last week’s 546.47-point drop, or 0.45%, closing at 119,102.67, with analysts pointing to budget speculation as the bearish trigger. Web context reveals a volatile KSE-100 history (e.g., 9% surge on May 13 post-ceasefire, web ID: 2), while posts found on X reflect investor anxiety—many blame IMF-driven tax uncertainty and budget delays. Critically, the narrative of “fiscal uncertainty” may underplay systemic fragility—web sources note ongoing economic woes (web ID: 7), and X sentiment suggests distrust in government clarity, hinting at deeper market instability.