KSE-100 plunges over 6,500 points as Pakistan-India tensions escalate
The stock market plummeted amid an escalation of tensions between nuclear-armed Pakistan and India, with the benchmark KSE-100 Index shedding over 6,500 points within minutes of opening on Wednesday.
At 9:30am, the benchmark index was hovering at 107,007.68, a decrease of 6,560.82 points or 5.78%.
Following the steep decline, trading was suspended.
Across-the-board selling pressure was observed in key sectors including commercial banks, oil and gas exploration companies, OMCs, power generation and refinery. Index-heavy stocks, including OGDC, PPL, POL, HUBCO, SNGPL and SSGC traded in the red.
The heaviest fighting in more than two decades has erupted between the two neighbours, with shelling and gunfire over the frontier in Kashmir and India striking targets inside Pakistan.
At least 8 Pakistanis were martyred and 35 were injured in Indian missile attacks inside Pakistan at 6 locations, Director General of Inter-Services Public Relations (DG ISPR) Lt Gen Ahmed Sharif Chaudhry said in a press conference in the wee hours of Wednesday.
The ISPR spokesperson said Indian missiles were launched at sites including Bahawalpur, Kotli and Muzaffarabad cities.
In retaliation, the Pakistan military brought down five Indian Air Force jets following Indian missile attacks, Defence Minister Khawaja Asif told Bloomberg.
US President Donald Trump said on Tuesday afternoon that the recent Indian strikes against targets in Pakistan and Pakistani-controlled Kashmir were a 'shame.'
On Tuesday, the PSX witnessed a negative session as its benchmark KSE-100 closed the day lower by 534 points to settle at 113,568.51, losing the gain of nearly 1,000 points the index had made during intra-day trading.
Globally, US stock futures and Chinese markets rose on Wednesday, as investors cheered news of a meeting between top U.S. and Chinese trade officials as a chance to tone down the tariffs, while China cut interest rates and vowed to support stock markets.
S&P 500 futures rose by about 0.9% and Hong Kong's Hang Seng was up by 1.7% by mid-morning. China blue chips rose 0.5%.
On Wednesday, China's central bank governor flagged a 10 basis point cut in its benchmark interest rate and a 50 basis point cut to bank reserve requirements, sending more cash into the banking system.
Simultaneously, the financial regulator announced an expanded scheme to send insurance investment into the stock market and promised more steps to support property markets, which investors took as a signal of authorities acting in concert.
This is an intra-day update
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