Jason Burwen
Karachi — The Pakistan Stock Exchange (PSX) suffered a sharp downturn on Wednesday, losing over 3,500 points as mounting geopolitical tensions with India rattled investor confidence.
The benchmark KSE-100 index closed at 111,326.57, down by 3,545.61 points or 3.09%, from the previous close of 114,872.18, according to PSX data. The market remained under pressure throughout the trading session, as fears of a potential military confrontation with India gripped investors.
The sell-off followed a late-night statement by Information Minister Atta Tarar, who claimed that India was planning military action against Pakistan within the next 24 to 36 hours. He cited credible intelligence reports suggesting imminent hostilities, which triggered widespread panic in the financial markets.
Analysts linked the sharp decline to uncertainty stemming from heightened Indo-Pak tensions in the aftermath of the April 22 terrorist attack in Pahalgam, which killed at least 26 people. India has since granted its military operational freedom to respond, fueling fears of escalation.
Mohammed Sohail, CEO of Topline Securities, attributed the market’s slump to news reports of a possible Indian strike. “The fear of a military response in the coming days has spooked investors,” he said.
Wais Ashraf, Director of Research at AKD Securities, echoed similar concerns. “Investors are reacting to the growing possibility of Indian military action, especially after the information minister’s briefing,” he noted.
Yousuf M. Farooq, Director of Research at Chase Securities, said the market was reeling from the government’s warning of an Indian strike within the next 24 to 36 hours. “Short-term market movement will now be driven by developments in Pakistan-India relations,” he added.
Amena Tawfik, Head of Research at Arif Habib Limited, also cited the rising geopolitical risk as the primary reason for Wednesday’s market plunge.
As uncertainty looms over the region, investors are expected to closely monitor any new developments related to the escalating tensions between the two nuclear-armed neighbors.
