PSX crashes as KSE-100 sheds over 6,500 points amid Pakistan-India tensions

KARACHI: The Pakistan Stock Exchange (PSX) witnessed a sharp decline on Wednesday, with the benchmark KSE-100 index plunging over 6,500 points at market open amid escalating tensions between Pakistan and India.

The KSE-100 index dropped by 6,560.82 points to 107,007.68 within minutes of trading opening around 9:30 AM, while the trading volume stood at 5.88 million shares.

The market downturn followed reports of a serious escalation in hostilities late Tuesday night. According to Pakistani authorities, India fired missiles into Pakistani territory, prompting a swift military response. Pakistan claimed to have shot down five Indian fighter jets in retaliation. The geopolitical uncertainty sent shockwaves through financial markets.

A sell-off was already anticipated in light of the growing tensions, and similar declines were seen in the Indian stock market as well.

On Tuesday, the KSE-100 index had closed at 113,568.50, recording a fall of 533.73 points, or 0.47 per cent. The index fluctuated within a range of 1,674.58 points, touching an intraday high of 115,093.10 (up 990.87 points) and a low of 113,418.52 (down 683.71 points). The total traded volume stood at 165.33 million shares.

Among the top decliners as of this morning were First Punjab Modaraba (FPJM), Dewan Farooque Spinning Mills Limited (DFSM), and Premier Insurance Limited (PINL).

By around 11:00 AM, the PSX had managed to recover some of its early morning losses, although it remained in negative territory. The benchmark KSE-100 index was still down by 1,662.98 points at 111,905.52, while the trading volume had increased to 104.24 million shares.

In percentage terms, some of the top decliners among KSE-100 index companies at that time included Agritech Limited (AGL), which fell by 8.65 per cent or Rs4.60 to Rs48.60, Yousaf Weaving Mills Limited (YOUW), which was down by 8.22 per cent or Rs0.30 to Rs3.35, and Pakistan International Bulk Terminal (PIBTL), which declined by 6.24 per cent or Rs0.55 to Rs8.27.

On the other hand, a few companies continued to trade in the green despite the prevailing geopolitical tensions. Punjab Oil Mills Limited (POML) rose by 8.92 per cent or Rs21.22 to Rs258.98, Murree Brewery Company Limited (MUREB) was up by 4.33 per cent or Rs34 to Rs819, while Unilever Pakistan Foods Limited (UPFL) gained 2.70 per cent or Rs602.26 to reach Rs22,893.

By 11:02 AM, the index remained in the red, posting a decline of 1.58 per cent or 1,794.50 points, bringing it to 111,774.00. The trading volume had slightly increased to 105.85 million shares. Despite the sharp losses observed during the session, the PSX remains up by 53.62 per cent compared to the same time last year. However, on a year-to-date basis, the market is down by 2.91 per cent. The KSE-100 index has moved within a 52-week range of 71,781.96 on the lower end to a high of 120,796.67.

Around 3:19 PM, the stock market was down a further 4.49 per cent, or 3,613.96 points, to 109,954.54.

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