Bears took control of the trade floor as shares at the Pakistan Stock Exchange (PSX) declined by more than 1,700 points in intraday trade as analysts attributed the slump to heightened tensions between the country and neighbouring India.
The benchmark KSE-100 index decreased by 1,717.35 points, or 1.5 per cent, to stand at 113,154.83 from the last close of 114,872.18 at 9:53am.
Mohammed Sohail, chief executive of Topline Securities, attributed the decline to “news of likely attack in next few days”.
Awais Ashraf, director research at AKD Securities, said, “Investors are worried about potential Indian military action against Pakistan, concerns that have intensified following the information minister’s press briefing.”
Earlier in the day, Information Minister Attaullah Tarar said that “credible intelligence” reports indicated that India was planning to conduct a military action against Pakistan in the next 24 to 36 hours amid tensions between the two countries after the Pahalgam attack in occupied Kashmir last week that New Delhi blamed on Islamabad, albeit without proof.
On Tuesday, India gave its military “operational freedom” to respond to the Pahalgam attack.
Speaking to the media hours after the development, Tarar said: “Pakistan has credible intelligence that India intends carrying out military action against Pakistan in the next 24-36 hours on the pretext of baseless and concocted allegations of involvement in the Pahalgam incident.”
He said Pakistan vehemently rejected “Indian self-assumed hubristic role of judge, jury and executioner in the region”, adding that it was completely “reckless”.
More to follow
