Amid escalating tensions between India and Pakistan, the Pakistani stock market has crashed. The Karachi 100 (KSE) Index has plunged over 2.19% or more than 2500 points due to fears of Indian action.
Pakistan suspects the Indian army might take substantial measures within 36 hours. Consequently, Pakistani investors are in a selling frenzy, and the market has plummeted significantly. Over the past few days, the Karachi 100 Index has decreased from 120,000 to 112,338.16.
Aafaq Mustafa, CEO of Ismail Iqbal Securities, mentioned that the market is reacting to statements from ministers. Pakistani officials suggest that Indian actions might occur within the next 24 to 36 hours. Accordingly, individuals are seeking safety and exiting their stock positions.
The Market Tumbled by 3,679 Points
Mohammad Sohail, CEO of Topline Securities, expressed concerns, indicating that Pakistan is anxious about possible Indian actions. Due to this uncertainty, investors remain cautious. The Pakistan Stock Exchange (PSX) benchmark KSE-100 Index hit an intraday low at 111,192.92 points, marking a decline of 3,679.26 points or -3.2% from the previous close of 114,872.18. The day's peak was 806 points lower at 114,066.12, signifying persistent selling pressure.
What's Worrying Pakistan?
Information Minister Attaullah Tarar, on TV, stated that Pakistan has credible intelligence that India is planning action, possibly avenging the Pahalgam attack. However, the minister assured that any aggressive move would be countered firmly.
Indian Military Authorized for Action
It's noteworthy that the terror-supporting nation, Pakistan, orchestrated an attack on unarmed civilians in Pahalgam, Jammu and Kashmir, leading to the loss of 26 lives. Following this, India resolved to teach Pakistan a lesson. After suspending the Indus Water Treaty, the Indian Prime Minister Narendra Modi held a meeting with military chiefs, providing the Indian Army with full authority.
Additionally, on Tuesday, PSX closed in the green. The KSE-100 Index climbed 808.28 points or 0.71% to close at 114,872.18, rising from the previous close of 114,063.90. The day's high was 115,040.59 points, and the low was 112,935.57 points.
