KARACHI – Pakistan Stock Exchange (PSX) witnessed dramatic crash, plunging nearly 7000 points in afternoon trading as geopolitical tensions with India reached new heights after reported Indian drone strikes on Pakistani territory.
The benchmark KSE-100 Index nosedived by 6,948 points, standing at 103,060, down from previous close of 110,009. The index briefly touched a low of 103,055.17, with trading volumes surpassing 147 million shares.
Panic selling was triggered by investor fears of further military escalation and potential economic fallout. Despite a 1-year gain of 41.95%, the year-to-date loss has widened to -10.48%, signaling a sharp reversal in market sentiment amid rising regional instability.
Market analysts say the sudden downturn reflects growing investor anxiety over the security situation after Pakistan’s military confirmed casualties in an Indian drone attack. With cross-border hostilities at their most volatile point in years, economic uncertainty looms large.
Authorities have not announced any measures yet to stabilize the markets. Security and financial analysts are urging calm but warn of continued volatility if tensions persist.
Indian Drone attack kills one, injures four Army personnel in Pakistan: DG ISPR
