Islamabad (TDI): Bearish sentiment continued on the trade floor at the Pakistan Stock Exchange on Thursday with shares plunging more than 1,000 points, a day after India announced a slew of diplomatic measures against Pakistan following a deadly attack in Indian Illegally Occupied Jammu and Kashmir (IIOJK) that resulted in the deaths of over two dozen tourists.
The benchmark KSE-100 index dropped by 1,086.51, or 0.93%, to stand at 116,139.63 from the previous close at 11:13 am.
Director Research at Chase Securities Yousuf M. Farooq said that the market opened lower amid fears of escalating tensions between Pakistan and India, according to Dawn.com.
However, he said, positive corporate earnings have supported a partial recovery.
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“Going forward, investor sentiment will hinge on the trajectory of India-Pakistan ties, upcoming corporate results, and the monetary policy decision likely in early May.”
On macroeconomic indicators, he underlined that inflation was at a record low — with the monthly current account at a record surplus, and the real effective exchange rate stood “at a stable 101”.
In a major escalation of regional geopolitical tensions, New Delhi suspended the Indus Waters Treaty with Islamabad with immediate effect in the wake of an attack in IIOJK’s Pahalgam a day ago.
Pakistan, in response, has convened a meeting of the National Security Committee (NSC) to deliberate the resulting situation.
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The attack took place in Pahalgam — a tourist destination in the scenic Muslim-majority territory that draws thousands of visitors every summer — and at least twenty-six people were killed, while police said another seventeen people were wounded, when gunmen opened fire on visitors in the popular destination.
