Monitoring Desk
Stocks at the Pakistan Stock Exchange (PSX) nosedived on Wednesday, with the benchmark KSE-100 index plunging more than 2,000 points in intraday trade as investors reacted sharply to escalating tensions between Pakistan and India.
At 9:53am, the KSE-100 index had already shed 1,717.35 points, or 1.5 per cent, falling to 113,154.83 from the previous close of 114,872.18. By 10:38am, losses deepened further, with the index dropping by 2,073.42 points, or 1.8 per cent.
Market analysts attributed the bearish sentiment to growing fears of a possible military escalation between the two nuclear-armed neighbours after Pakistan’s information minister issued a stark warning of a potential Indian attack.
Mohammed Sohail, chief executive of Topline Securities, said the heavy sell-off was linked to “news of likely attack in next few days,” which had unsettled investors.
Awais Ashraf, director research at AKD Securities, echoed these concerns, stating: “Investors are worried about potential Indian military action against Pakistan, concerns that have intensified following the information minister’s press briefing.”
Yousuf M. Farooq, director research at Chase Securities, added that the market remained under pressure after Information Minister Attaullah Tarar’s late-night statement, which suggested India could take military action within the next 24 to 36 hours.
“The market in the short term will most likely follow newsflows of Pakistan-India tensions,” he said.
The anxiety stems from Minister Tarar’s assertion that “credible intelligence” indicated India was planning military action against Pakistan in retaliation for the Pahalgam attack in occupied Kashmir last week — an incident India blamed on Pakistan without providing evidence.
On Tuesday, India had also given its military “operational freedom” to respond to the attack, raising the risk of heightened conflict.
In his media briefing, Tarar firmly rejected what he termed India’s “self-assumed hubristic role of judge, jury and executioner,” warning that such reckless adventurism could have catastrophic consequences for the region.
The tense geopolitical climate has rattled investors, overshadowing any positive economic developments, and analysts warned that volatility may persist until diplomatic channels manage to ease tensions between Islamabad and New Delhi.
