The Pakistan Stock Exchange (PSX) plunged into chaos on Wednesday as heightened military tensions between India and Pakistan triggered a massive sell-off, resulting in the steepest single-day declines in the country’s financial history.
The benchmark KSE-100 index crashed by over 6,500 points, eventually settling at 103,383 points, wiping out billions in market value. At one point during intra-day trading, the index had nosedived by a staggering 8,410 points, deepening investor panic.
The meltdown was severe enough that PSX authorities halted trading temporarily for one hour as per regulations after the 30-index fell more than 6%, activating the market’s circuit breakers. However, when trading resumed, the bearish sentiment intensified, and the index continued its downward spiral.
Market experts warn that if the situation between the two nuclear-armed neighbours continues to deteriorate, further losses could follow in the coming days. They also call for a clear government communication strategy to reassure investors and stabilize the economic outlook.
The PSX's collapse highlights the fragility of regional markets in the face of geopolitical conflict, and the urgent need for diplomatic de-escalation to prevent long-term financial damage.
