Pahalgam attack: Pakistan’s stock market plunges

KSE-100 index plunged by 2,485 points early in the session as tensions between India and Pakistan simmer

Islamabad: Pakistan’s stock market on Thursday witnessed a sharp dip, with the benchmark KSE-100 index closing at 1,15,019.81, down by 2206.33 points from the last close, amid brewing tension between India and Pakistan after the Pahalgam terror attack.

Terrorists opened fire in Pahalgam in Jammu and Kashmir on Tuesday, killing 26 people, mostly tourists, in the deadliest attack in the Valley since the Pulwama strike in 2019. The Resistance Front (TRF), a proxy of the banned Pakistan-based Lashkar-e-Taiba (LeT), claimed responsibility for the attack.

---

India on Wednesday downgraded diplomatic ties with Pakistan and announced a raft of measures, including suspension of the Indus Water Treaty and immediate shutting down of the Attari land-transit post in view of the cross-border links to the terror attack.

In retaliation, Pakistan also suspended bilateral trade and accords, including the Simla Agreement, and airspaces with India, among other moves.

The Pakistan Stock Exchange (PSX) took the hit, and the KSE-100 index plunged by 2,485 points early in the session, dropping to 1,14,740 points. As the day progressed, the market showed signs of slight recovery, narrowing the loss to 1,196 points. By midday, the current index was at 1,16,030.02 points.

However, it nosedived again and finally closed at 1,15,019.81, down by 2,206.33 points, or 1.92 per cent. The sharp dip comes after the market touched an all-time high, crossing the 1,20,000 mark earlier this year.

Observers said the bearish trend is expected to dominate the market until there is a sign of improvement in the current political and security situation with India.