Bears prevailed at the Pakistan Stock Exchange (PSX) on Monday as the benchmark KSE-100 index dropped below the 40,000 points mark.
The index lost 403.28 points, or one per cent, to reach 39,920.17 points at 12:29pm.
Market analysts have attributed the decline in stocks to political and economic uncertainty and an expected increase in the policy rate.
The stocks closed at 40,323.45 points on Friday last.