The Pakistan Stock Exchange (PSX) experienced a dramatic crash as it plunged more than 8,000 points in afternoon trading. This downturn was spurred by heightened geopolitical tensions with India, following reports of Indian drone strikes on Pakistani territory.
The benchmark KSE-100 Index nosedived by a staggering 6,948 points, settling at 103,060, significantly down from its prior close of 110,009. Remarkably, the index briefly touched a low of 103,055.17, and trading volumes surged beyond 147 million shares.
Panic selling was ignited by investors’ fears of further military escalation and the potential for severe economic fallout. Despite boasting a one-year gain of 41.95%, the year-to-date loss has expanded to -10.48%, highlighting a sharp reversal in market sentiment amid rising regional instability.
Market analysts indicate that this sudden downturn mirrors growing investor anxiety over the security situation, especially after Pakistan’s military confirmed casualties resulting from an Indian drone attack. With cross-border hostilities at this most volatile point in years, economic uncertainty looms ominously.
Authorities have yet to announce any measures to stabilize the markets. Meanwhile, security and financial analysts are urging for calmness but caution of ongoing volatility should tensions persist.