Pakistan Stock Exchange slumps amid escalating tensions with India

Shares at the PSX fell over 2,000 points in intraday trade amid uncertainty over speculation that India might launch military strikes against Pakistan

Karachi: Trading in the Pakistan Stock Exchange (PSX) remained in the negative on Wednesday, owing to the escalating tensions with India following the terror attack in Jammu and Kashmir’s Pahalgam that killed 26 people.

Shares at the PSX fell over 2,000 points in intraday trade amid uncertainty over speculation that India might launch military strikes against Pakistan. On Tuesday evening, Information Minister Ataullah Tarar added to the uncertainty by claiming that Pakistan had credible intelligence that India intends to carry out military action against it in the next 24-36 hours.

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Earlier in the day, Prime Minister Narendra Modi, in a meeting with the top defence brass, gave them “complete operational freedom” to decide on the mode, targets and timing of India’s response to the Pahalgam terror attack.

The benchmark Karachi Stock Exchange-100 index decreased by 1,717.35 points, or 1.5 per cent, to stand at 113,154.83 on Wednesday morning from the last close of 114,872.18.

At 10:38 am, the index declined by 2,073.42 points, or 1.8 per cent, from the last close. Yousuf M Farooq, director of research at Chase Securities, said the decline was due to “news of a likely attack in the next few days”.

Fatima Bucha of AKD Securities said investors’ concerns increased following the information minister’s press briefing. “No doubt the market is under pressure,” she said.

All Karachi Tajir Ittehad Association President Atiq Mir said there was uncertainty in all business sectors due to the escalation in diplomatic and military tensions with India.

“Markets and shopping centres are not doing business as usual this week as everyone is more concerned about what will happen now,” he said. Following the April 22 terror attack, India downgraded diplomatic ties with Pakistan and announced a raft of measures, including expulsion of Pakistani military attaches, suspension of the Indus Water Treaty of 1960 and immediate shutting down of the Attari land-transit post in view of the cross-border links to the attack.