PSX plunges over 3500 points amid rising Pakistan India tensions

KARACHI:  Pakistan Stock Exchange (PSX) suffered a blood bath on Wednesday as it plunged 3,545 points or (3.09%) closing at 111,326 level amid escalating geopolitical tensions.  

“Investors are concerned about rising tensions with the neighbouring country and the potential threat of military action by India. These concerns were further heightened following a statement by the Information Minister, which worsened the sentiment,” Muhammad Awais Ashraf, Director Research at AKD Securities told Hum News English.

Pakistan Information Minister Attaullah Tarar in an early Wednesday morning statement said there are credible intelligence reports that India was planning to conduct a military action against Pakistan in the next 24 to 36 hours amid rising tensions between the two South Asian nuclear armed nations. 

“We believe this period of uncertainty also presents a strategic opportunity for investors to accumulate positions in fundamentally strong companies that are well-aligned with the country’s improving macroeconomic indicator and ongoing structural reforms,” Ashraf went on to add.

Bear Market drivers’ stocks fell across the board after government reports of India intending to carry out military action against Pakistan, said Ahsan Mehanti, CEO at Arif Habib Commodities.

Rupee instability, slump in global crude oil prices and fears over the outcome of heightened Pak-India border tensions played a catalyst role in record bearish activity.

The local equity market suffered a sharp and broad-based decline today, as intensifying geopolitical tensions between Pakistan and India sent shockwaves through investors’ sentiment, Topline Securities stated.

“The Information Minister statement triggered widespread risk aversion, with investors rushing to reduce exposure amid heightened uncertainty,” Topline added.

Key heavyweight stocks significantly contributed to the market’s fall, Notable included LUCK, ENGROH, UBL, PPL, and FFC, which collectively pulled the Index down by 1,132 points.

Despite the bearish sentiment, market participation remained resilient. Total traded volume reached 489 million shares, while the market’s total turnover stood at Rs 31.1 billion. CNERGY topped the volume chart with 46 million shares changing hands.