Pakistan Stock Exchange witnesses sharp decline amid growing tensions at LoC

Karachi, April 30 (IANS) The Pakistan Stock Exchange (PSX) plunged sharply on Wednesday amid rising tensions and fears of war against India with the benchmark KSE-100 Index suffering a major decline of over 2.2 per cent during the day's trading.

PSX shed at least 2529.39 points during the intra-day trading with investors reacting aggressively to weak market cues and economic anxieties amid rising geopolitical tensions.

KSE-100 index was trading at 111,699.59, a major downfall from the previous day’s close at 114,872.18 while PSX remained down by at least 806.06 points with a sustained selling pressure throughout the trading day.

"Traders have noted cautious sentiments amid prevailing political and fiscal uncertainty," said Ahfaz Mustafa, CEO, Ismail Iqbal Securities.

"The market is reacting to the statement by the ministers that the next 24 to 36 hours could see serious actions from India. This is causing people to flee to safety and exit the equities for the time being," he added.

The market's negative sentiment has been triggered by the post-midnight televised statement made by Pakistan’s Information Minister Attaullah Tarar in which he stated that Islamabad has credible intelligence about New Delhi's plan to carry out military strikes in Pakistan in response to the Pahalgam attack.

The ongoing escalation has also prompted global powers to intervene and establish multi-level contacts with both countries, urging both nuclear-powered neighbours to resolve the issues through dialogue.

Pakistan has offered to participate in a third-party neutral and credible investigation into the Pahalgam incident, claiming that if such an investigation is initiated, Islamabad would also present what it claims as irrefutable evidences of India’s alleged involvement in the Jaffar Express terror attack and other incidents of terror in Pakistan.

--IANS

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