https://x.com/pmln_org/status/1920058098837803126
The Pakistan Stock Exchange (PSX) plunged by over 5% on Wednesday following India’s overnight airstrikes on terrorist camps in Pakistan and Pakistan-occupied Kashmir. The strikes, known as Operation Sindoor, targeted nine sites believed to be hideouts of terror groups Jaish-e-Mohammed, Lashkar-e-Taiba, and Hizbul Mujahideen. The KSE 100 index, the main stock market index in Pakistan, fell by 6,272 points or 6% in early trading.
Panic selling was observed across trading floors as the index hit a low of 112,076.38. The PSX website displayed a message stating it was “under maintenance until further notice.”
https://x.com/pmln_org/status/1920039987908665683
The sharp decline is attributed to heightened tensions between India and Pakistan after the air raids.
https://x.com/fawadchaudhry/status/1920048940117880907
Citizens in both countries woke up to news of fighter jets in the air and ceasefire violations along the Line of Control.
Stock market reacts to airstrikes
Yousuf M.
https://x.com/fawadchaudhry/status/1920003176813461557
Farooq, research director at Chase Securities, said, “The market opened under pressure today following Indian strikes on unarmed civilians in Pakistan.
Some selling has been observed, though volumes remain low as investors assess the evolving situation.”
Shahbaz Ashraf, chief investment officer at Frim Ventures, noted that the flare-up has rattled investor sentiment, with fears of further escalation weighing on the market. However, he added that analysts remain “cautiously optimistic, hoping the conflict will remain short-lived with likely mediation from global powers.”
The Indian Army confirmed the military operation in the early hours of Wednesday, stating that the targets were chosen based on strong intelligence inputs and their involvement in terror activities. The overnight operation was announced by the Indian Army in a post on X, declaring, “Justice is served.
Jai Hind!”
As geopolitical tensions continue to flare, the impact on the financial markets reflects the deepening crisis between the neighboring countries. International rating agency Moody’s warned that sustained India-Pakistan tensions could negatively affect Pakistan’s growth and disrupt its access to foreign funding flows.
