The Pakistan Stock Exchange (PSX) has experienced a sharp decline, losing a staggering 12,000 points in just two days, as escalating tensions between Pakistan and India continue to unsettle investors. The KSE-100 index plunged by 6,948 points, falling to 103,060 during the early hours of trading on Thursday.
The day began with some optimism, as the index briefly rose to 111,881 points, gaining 1,800 points. However, this brief rally was short-lived, and the market quickly turned negative, prompting a temporary halt in trading. This downward trend follows a turbulent Wednesday, when the PSX saw a massive loss of 6,000 points after India launched an attack on Pakistan on May 6, heightening war fears.
Earlier in the week, the market had shown signs of recovery after the State Bank of Pakistan (SBP) announced a policy rate cut, but the positive momentum quickly evaporated. On Monday, the KSE-100 index opened at 113,223.46 points, down by nearly 900 points due to rising geopolitical tensions. Despite some recovery later in the day, the market closed at 113,568 points, reflecting ongoing investor anxiety.
As the week progressed, investors remained cautious, with the KSE-100 index ultimately closing at 110,009 points on Wednesday. Despite a brief uptick to 112,457 points, the market ended the day in the red, losing 1,100 points. The volatility in the stock market highlights the growing uncertainty surrounding the political and security situation in the region.
The ongoing instability has led to a “selling spree” among investors, as many fear the potential impact of the conflict on Pakistan’s economy. With war clouds hanging over the region, the PSX continues to grapple with these significant market fluctuations, leaving investors on edge.
As the situation develops, all eyes will be on the stock market, with analysts warning of further volatility. The PSX’s performance in the coming days will depend largely on how the geopolitical tensions evolve, and whether any diplomatic resolution can be reached between Pakistan and India.