PSX slumps over 2,000 points as Pak-India tensions flare

KARACHI: KARACHI: The Pakistan Stock Exchange (PSX) plunged for a second straight session on Thursday, shedding more than 2,000 points, after India announced the suspension of the Indus Waters Treaty and the closure of the Attari-Wagah border.

The sharp drop comes as Pakistan’s National Security Committee met to chart a response to India’s knee-jerk measures.

The benchmark KSE-100 Index fell as much as 2,564 points during intraday trade before closing at 115,019 — down 2,206 points, or 1.88 per cent — amid heightened investor caution.

“Stocks fell across the board as investors feared a retaliatory response from Pakistan following India’s moves over the occupied Kashmir attacks,” said Ahsan Mehanti, CEO of Arif Habib Commodities.

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A weakening rupee, deteriorating trade prospects between the two neighbours, and growing border tensions further fuelled the sell-off, Mehanti added.

The market remained under pressure throughout the day, weighed down by regional instability and the end of the futures rollover week, said Topline Securities Research. The session took on a distinctly risk-off tone.

Major negative contributions came from HUBC, ENGRO, MARI, BAHL, and UBL, which collectively pulled the index down by 605 points.

Despite the bearish sentiment, PSO led trading activity with a traded value of Rs 2.36 billion, followed by MLCF (Rs 2.06 billion), OGDC (Rs 1.78 billion), MARI (Rs 1.68 billion), and SNGP (Rs 1.63 billion), indicating selective investor interest in key stocks.

On the corporate front, Pakistan Tobacco (PAKT) reported its first-quarter FY25 results, posting an earnings per share (EPS) of Rs 24.53 — down 20 per cent quarter-on-quarter but up 22 per cent year-on-year. The company’s cumulative 9MFY25 EPS rose 34 per cent YoY to Rs 3.84, though earnings disappointed due to higher costs and weaker gross margins, Topline noted.