From India's CNBCTV-18, April 24:
The Pakistan Stock Exchange (PSX) witnessed a steep selloff on Thursday, with KSE 100 Index shedding over 2,500 points [2%] amid rising geopolitical tensions with India at a time when the domestic economy is already in dire straits.
The market crash in Karachi stock exchange followed a series of tough measures and rhetoric from New Delhi after the April 22 terror attack in Jammu and Kashmir's Pahalgam, which claimed the lives of 26 tourists, including one Nepali national.
India’s Cabinet Committee on Security, chaired by Prime Minister Narendra Modi, took swift diplomatic steps — suspending the Indus Waters Treaty, halting the SAARC Visa Exemption Scheme for Pakistani nationals, expelling military attachés, and slashing diplomatic staff at both High Commissions. Additionally, the Attari check post has been shut immediately, with a May 1 deadline for any legal cross-border returns.
Meanwhile, Pakistan responded with a surface-to-surface missile test on April 24. According to reports, the country's forces likely tested the Shaheen-III or Babur cruise missiles, which are capable of reaching major Indian cities, along the Karachi coastline within Pakistan’s Exclusive Economic Zone.
Sana Tawfik, Head of Research at Arif Habib Limited, also told Dawn that “the dip in market sentiment was primarily driven by concerns over the India-Pakistan relationship.”
Read more: With the Indus Water Treaty, India goes for Pakistan’s ‘jugular’
Around the same time, India’s newest guided missile destroyer, INS Surat, successfully carried out a precision strike against a sea-skimming target on the same day. The Medium-Range Surface-to-Air Missile system, jointly developed with Israel, boasts a range of 70 kilometres.
In a public address in Madhubani, Bihar, on National Panchayati Raj Day, Indian Prime Minister Narendra Modi observed a moment of silence for the Pahalgam victims and declared: “India will identify, track and punish every terrorist and their backers. We will pursue them to the ends of the Earth.”
Analysts flag India-Pakistan ties, IMF downgrade
"The market opened lower amid fears of escalating tensions between Pakistan and India," said Yousuf M. Farooq, Director of Research at Chase Securities, in a quote carried by Dawn. "However, positive corporate earnings have supported a partial recovery."
Also weighing on markets was the International Monetary Fund’s latest outlook. On April 23, the IMF cut Pakistan’s FY25 growth forecast to 2.6%, down from 3% in January, citing rising global trade tensions, particularly a fresh wave of US tariffs. Inflation projections were also raised to 5.1% for FY25 and 7.7% for FY26....
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Just so you know, the Karachi Stock Exchange is interesting to say the least. A few of our posts:
Karachi Stock Exchange: KSE’s black Monday — heaviest ever single-day decline
The rumours of change at the head of the government spread like wildfire and nervous investors started to throw away shares at ridiculously low prices. When the dust settled at the end of trading day, a cool sum of Rs186 billion ($3.2 billion) had been washed away from the market capitalisation....So, should the KSE Board or the frontline regulator -- the KSE management -- have moved in to calm the investors’ fears. “We cannot be expected to comment on rumours,” says Shaukat Tarin, the chairman of the Board of Directors of KSE, adding: “If we were to do that, we would be doing just that and nothing else”....MOREPakistani Investors Stone Karachi Exchange as Stocks Plunge...
Karachi: Trade in shares on Pakistan's main stock exchange ground to a halt on Tuesday as investors lost all interest...
...The Karachi Stock Exchange benchmark 100-share index ended unchanged from Monday at 9,183.14, 39 points above a floor that was imposed on August 28 after sharp losses. No shares listed on the KSE index were traded for the first time ever...
