Pakistan stocks slide on surging tensions with neighboring India
ISLAMABAD: The Pakistan Stock Exchange plunged and lost more than 1,400 points in intraday trading, traders and analysts said on Monday, as rising tensions with India triggered geopolitical jitters and fueled a wave of investor selling at the market.
The benchmark KSE-100 index shed 1,405.44 points, or 1.22 percent, to close at 115,469.34 points after touching an intraday high of 116,658.94 points on Monday, according to stock traders.
The development came amid heightened tensions between Pakistan and India over the killing of 26 tourists in Indian-administered Kashmir on April 22. New Delhi has blamed the attack on Pakistan, Islamabad denies any complicity.
"The prevailing negative sentiment was largely driven by escalating tensions between India and Pakistan, which heightened investor concerns and weighed heavily on overall market confidence," Karachi-based Topline Securities brokerage firm said.
It said companies like SYS, LUCK, MEBL and HBL contributed 489 points to the index, while ENGRO, UBL, MARI, EFERT and PSO shaved off 907 points from the benchmark.
"Despite the risk-averse sentiment, overall participation remained firm with volumes clocking in at 421 million shares and a turnover of Rs26.43 billion," the firm said in its review.
The market saw an overall trade of 533 million shares, valued at Rs33.7 billion.
Muhammad Rizwan, a director at Chase Securities, said below-expectation corporate results also disappointed investors.
"NRL, PAEL and Engro Holding disappointed investors, impacting stocks in a range of 5.4 percent to 9.7 percent," Rizwan said.
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