The Pakistan Stock Exchange (PSX) witnessed strong selling pressure as its benchmark KSE-100 Index closed lower by over 3% during trading on Wednesday as rising tensions between Pakistan and India continued to take a toll on the stock market.
The bears remained dominant over the market throughout the day, pushing the index to an intra-day low of 110,631.84.
At close, the benchmark index settled at 111,326.57, down by 3,545.61 points or 3.09%.
“The local equity market suffered a sharp and broad-based decline today, as intensifying geopolitical tensions between Pakistan and India sent shockwaves through investor sentiment,” brokerage house Topline Securities said in its post-market report.
Key heavyweight stocks significantly contributed to the market’s fall. Notable laggards included LUCK, ENGROH, UBL, PPL, and FFC, which collectively pulled the index down by 1,132 points, it added.
On Tuesday, the benchmark index had had closed at 114,872.18.
A rise in tensions between Pakistan and India following Pahalgam attack has kept the stock market under pressure since last week.
Information minister Attaullah Tarar in the wee hours of Wednesday warned of a likely military strike by India on Pakistan in the next 24 to 36 hours.
“Pakistan has credible intelligence that India intends to launch a military strike within the next 24 to 36 hours using the Pahalgam incident as a false pretext,” the minister said in a press conference as well as in a post on X.
Internationally, shares struggled for direction on Wednesday and oil prices slid as relief over a potential easing of global trade tensions was offset by a worsening economic outlook and dour signals from corporates swept up by Donald Trump’s tariffs.
US Treasury yields also languished near multi-week lows as traders raised bets of more rate cuts from the Federal Reserve to support the world’s largest economy.
Despite Trump’s move to soften the blow of his auto tariffs and signs of progress in broader trade negotiations, details remain scant, with Commerce Secretary Howard Lutnick saying he had reached one deal with a foreign power.
Adding to the tariff anxiety, investors were also grappling with deteriorating US data as Trump’s hefty tariffs rippled across businesses and consumers at home.
“We raise the probability of a prolonged economic stagnation in the coming months, meeting the criteria for a recession, to 50%,” said David Kohl, chief economist at Julius Baer.
Meanwhile, the Pakistani rupee posted marginal gain against the US dollar, appreciating by 0.02% during trading in the inter-bank market on Wednesday. At close, the local currency settled at 280.97 against the greenback.
Volume on the all-share index increased to 490.95 million from 409.93 million recorded in the previous close.
The value of shares rose to Rs31.12 billion from Rs29.07 billion in the previous session.
Cnergyico PK was the volume leader with 46.17 million shares, followed by WorldCall Telecom with 40.70 million shares, and B.O.Punjab with 20.00 million shares.
Shares of 457 companies were traded on Wednesday, of which 60 registered an increase, 352 recorded a fall, while 45 remained unchanged.
