Escalating Pak-India tension: KSE-100 Index plummets more than 3% due to intense selling activities
The Pakistan Stock Exchange (PSX) took a nose-dive on Wednesday as the KSE-100 Index plummeted over 3% due to escalating tensions between Pakistan and India.
The market saw a bearish trend throughout the trading day, with the index hitting a low of 110,631.84 at one point. By the close, the benchmark index stood at 111,326.57, having lost 3,545.61 points or 3.09%.
"The local equity market experienced a harsh decline today, as intensifying geopolitical tensions between Pakistan and India sent shockwaves through investor sentiment," Topline Securities remarked in their post-market report.
Key stalwarts in the market significantly contributed to the day's loss. Notables such as LUCK, ENGROH, UBL, PPL, and FFC collectively dragged the index down by 1,132 points.
Tensions between the two nations have been mounting since the Pahalgam attack on April 22, 2025, which left 26 dead, including 25 Indians and a Nepalese national. Cross-border gunfire and a downgrade of diplomatic ties followed.
In the small hours of Wednesday, Information Minister Attaullah Tarar cautioned of an imminent military strike by India within the next 24 to 36 hours. "Pakistan possesses credible intelligence indicating that India is planning a military strike within the next 24 to 36 hours, using the Pahalgam incident as a pretext," the minister announced at a press conference and on social media.
Internationally, shares were lackluster, and oil prices dipped as global trade tensions eased but were offset by an uncertain economic outlook and pessimistic signals from corporations affected by Donald Trump's tariffs. US Treasury yields lingered near multi-week lows as traders boosted expectations for additional rate cuts from the Federal Reserve to support the world's largest economy.
Despite Trump's attempts to ease the impact of his auto tariffs and progress in broader trade negotiations, details remain scarce. Commerce Secretary Howard Lutnick reportededly reached an agreement with a foreign power on one deal. However, investors were still grappling with deteriorating US data, as Trump's tariffs were being felt across businesses and consumers domestically.
Meanwhile, the Pakistani rupee showed a nominal increase against the US dollar, appreciating by 0.02% during trading in the inter-bank market. The local currency closed at 280.97 against the greenback.
Volume on the all-share index rose to 490.95 million from 409.93 million in the previous close. The value of shares increased to Rs31.12 billion from Rs29.07 billion in the previous session.
Cnergyico PK was the most traded stock, followed by WorldCall Telecom and B.O.Punjab. A total of 457 companies were traded on Wednesday, with 60 experiencing gains, 352 recording losses, and 45 remaining unchanged.
- The escalating tensions between Pakistan and India led to a harsh decline in the local equity market, as stated by Topline Securities.
- The KSE-100 Index plummeted over 3% on Wednesday, bringing it down to 111,326.57.
- The benchmark index suffered a loss of 3,545.61 points, following a bearish trend throughout the trading day.
- Key stalwarts like LUCK, ENGROH, UBL, PPL, and FFC collectively dragged the index down by 1,132 points.
- The market losses appear to be a direct result of the intensifying geopolitical tensions between Pakistan and India.
- The small hours of Wednesday saw a warning from Information Minister Attaullah Tarar of an imminent military strike by India within the next 24 to 36 hours.
- In the finance world, US Treasury yields lingered near multi-week lows as traders boosted expectations for additional rate cuts from the Federal Reserve.
- Meanwhile, in Punjab, Cnergyico PK was the most traded stock on the all-share index, indicating continued business activity despite the general news of political and war-and-conflicts tensions.
