The Pakistan Stock Exchange (PSX) witnessed a steep fall on Thursday as rising tensions with India sparked panic selling across the capital market. Investors dumped shares amid fears of further escalation, erasing much of the week’s earlier gains.
The benchmark KSE-100 Index plunged to an intraday low of 114,661.20, down 2,564.94 points or 2.19% from Wednesday’s close of 117,226.14. Although minor recovery followed, the market remained volatile and under intense pressure.
At its highest point during the session, the index hit 116,568.13, still a drop of 658.01 points or 0.56%, showing investor unease.
Ahfaz Mustafa, CEO of Ismail Iqbal Securities, linked the market slide to rising geopolitical uncertainty.
“Markets are uncertain over our response to India’s action and therefore are waiting for clarity to see if the situation escalates,” he told media.
Read: Pahalgam Attack: Tragedy or Timed Tactic? A Pattern India Can’t Ignore
He added that rollover week and result season had intensified selling pressure.
The market’s downturn followed India’s controversial decisions after the Pahalgam attack in Indian Illegally Occupied Jammu and Kashmir (IIOJK), where gunmen killed 26 people. In retaliation, India suspended the Indus Water Treaty, banned Pakistani nationals, and expelled Pakistani defence officials.
These sudden moves prompted a strong reaction from Islamabad. A crucial National Security Committee (NSC) meeting began in Islamabad, chaired by Prime Minister Shehbaz Sharif, to decide Pakistan’s next steps.
Foreign Minister Ishaq Dar, while speaking on Geo News’ “Aaj Shahzeb Khanzada Kay Sath,” called India’s actions “unjustified and lacking evidence.”
“New Delhi has not linked Pakistan to the attack with proof,” Dar said.
He added that India was “blaming Pakistan for its internal issues.”
Sources say the NSC is evaluating both internal and external security implications and reviewing India’s rapid and aggressive actions.
The current session followed Wednesday’s loss of 1,204.21 points, when the KSE-100 closed at 117,226.14. Thursday’s additional plunge brings the two-day total loss to 3,769 points, reflecting extreme investor anxiety.
Analysts warn that unless political clarity is restored, volatility may persist.
The market’s sharp reaction underlines how geopolitical tensions can swiftly override fundamentals.
With Pakistan preparing a formal response, all eyes remain on the NSC outcome.
Follow us on Google News, Instagram, YouTube, Facebook, Whats App, and TikTok for latest updates
