The Pakistan Stock Exchange (PSX) witnessed heavy selling pressure at the opening bell on Thursday, with the benchmark KSE-100 Index nosediving by more than 2,500 points in the early hours of trading.
The benchmark KSE-100 index closed at 115,019.81 points, marking a decline of 2,206.33 points or 1.88%.
The index continued its downward journey from the previous day, largely influenced by worsening global economic situation.
Market analysts linked the sharp decline of Thursday to the compounded effect escalating geopolitical tensions between Pakistan and India. A key trigger appeared to be New Delhi’s decision on Wednesday to suspend the Indus Waters Treaty with Pakistan — a longstanding bilateral water-sharing agreement — in the wake of a deadly attack in Pahalgam, Indian Illegally Occupied Jammu and Kashmir (IIOJK), that killed 26 tourists. India has blamed Pakistan for the incident.
The development has raised fears of a potential diplomatic and strategic standoff, unsettling investor sentiment and prompting broad-based profit-taking across key sectors. Traders noted that the uncertainty had spurred risk aversion, as market participants moved to the sidelines awaiting further clarity on the geopolitical front.
