Pakistan Stock Exchange Halts Trading As KSE-30 Falls 7% Amid Tensions With India
The index showed signs of recovering earlier in the day after registering one of its steepest single-day losses in history.
Pakistan Stock Market Crash: Pakistan temporarily suspended trading on its stock market after the benchmark KSE-30 index plummeted 7.2%, marking a second straight session of steep losses. The selloff follows Indian military strikes on multiple terrorist targets across Pakistan under the operation codenamed Operation Sindoor.
In contrast, Indian equity markets remained largely stable. Benchmark indices Sensex and Nifty traded flat, showing resilience despite escalating geopolitical tensions with the neighboring country.
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The broader KSE-100 index also plunged over 6.32%, a drop of 6,948.73 points, to 103,060.30 as of 1 p.m. local time, according to Investing.com. Investor sentiment in Pakistan is now focused on the International Monetary Fund (IMF), which is expected to announce a decision tomorrow on whether it will extend its funding facility to the country.
Prior to the recent flare-up in hostilities, triggered by a deadly terror attack in Pahalgam, Pakistan’s stock market had shown signs of recovery. Improved investor confidence had been fueled by a sovereign credit rating upgrade and falling global oil prices.
Last month, Pakistan experienced a similar market crash following former US President Donald Trump’s announcement of new trade tariffs. The benchmark index plummeted by over 8,700 points, triggering a brief trading halt.
Pakistan’s equity market delivered an 84% return in 2023, its best performance in over two decades, attracting increased foreign interest from asset managers like BlackRock and Eaton Vance.
This recovery was underpinned by macroeconomic stabilization efforts and a successful IMF bailout agreement. However, with fresh geopolitical uncertainties looming, the IMF’s funding decision will be closely watched as a key determinant of near-term market direction.
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