The Pakistan Stock Exchange (PSX) witnessed a steep decline at the start of trading today, as the KSE-100 index plunged by 2,485 points early in the session, dropping to 114,740 points.
As the day progressed, the market showed signs of slight recovery, narrowing the loss to 1196 points. By midday, the current index was at 116,030.02 points.
This sharp dip comes amid ongoing volatility in recent trading sessions. While the market had previously touched an all-time high, crossing the 120,000 mark earlier this year, sentiment has since turned bearish, with declines recorded for consecutive days, including yesterday.
Market analysts attribute the fluctuations to investor uncertainty and profit-taking following the recent rally.
The drop follows tensions between New Delhi and Islamabad in the aftermath of a deadly attack in Pahalgam, Indian Illegally Occupied Jammu and Kashmir (IIOJK), where 26 tourists were killed and 17 others injured.
India had suspended the Indus Waters Treaty of 1960 with immediate effect, closed the Attari-Wagah border crossing and banned Pakistani nationals from entering the country. Those already in India were ordered to leave within 48 hours.
Furthermore, the Indian government expelled all Pakistani military advisors from the Pakistan High Commission in New Delhi and recalled its own military service advisors and auxiliary staff from the High Commission in Islamabad.
India also requested Pakistan to reduce the strength of its diplomatic staff in New Delhi from 55 to 30, signalling a sharp downgrade in diplomatic relations.
