Billions vanish as share prices plunge at Pakistan Stock Exchange
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Billions lost in a flash as the latest round of Pakistan-India tensions dented spirits as the Pakistan Stock Exchange (PSX) opened for business on Thursday, sinking share prices by over 2,500 points in the first few minutes of trading, reported 24NewsHD TV channel.
The panic selling was everywhere and the PSX’s benchmark KSE-100 index nosedived by 2,546 points or -2.12 percent to 114,679 points.
However, the situation stabilized after earlier jitters and by 10:20 am, the KSE recovered some of the lost ground and the index was trading at 116,135.01 points down by 1,091.13 points or -0.94 percent.
Of the 377 companies traded so far, share value of only 81 companies went up, 288 were down while eight were unchanged.
The volatile situation was triggered by India’s abrupt suspension of the Indus Waters Treaty — a key water-sharing agreement signed in 1960 — as part of a series of diplomatic steps following false-flag operation in Indian-occupied Kashmir town of Pahalgam.
Indian authorities blamed Islamabad for the attack that left 26 tourists dead, prompting New Delhi to expel Pakistani diplomats, shut the Wagah border crossing, and revoke SAARC visa exemptions for Pakistani nationals. The cumulative effect of these measures rattled investors confidence at the stock market.
Sectoral losses were widespread, with commercial banks leading the slump, dragging the index down by 699.02 points. Oil and gas exploration companies followed, losing 312.76 points, while cement, investment companies, and fertilizer sectors collectively contributed to over 670 points of the decline.
The steepest declines were observed in key stocks such as BWCL (-10.00%), AGL (-8.40%), EFUG (-8.38%), GADT (-5.91%), and POML (-5.38%).
On Wednesday, Pakistan Stock Exchange (PSX) had witnessed a downward trend as KSE-100 Index dropped by more than 1,200 points.
At the end of the day, the PSX’s benchmark KSE-100 Index lost 1,204.21 points or -1.03 percent to reach 117,226.14 points.
According to financial analysts, the modest uptick in the dollar and the downturn in the stock market mirrored the broader impact of global financial instability and the persistent economic uncertainty facing the country.
Reporter Kavish Memon