The Pakistan Stock Exchange witnessed unprecedented turmoil as geopolitical tensions escalated sharply following India’s precision strikes in Pakistan-occupied Kashmir. Over two consecutive days, the KSE-100 Index suffered historic losses, triggering a market-wide panic, a temporary trading halt, and erasing significant investor wealth amid fears of further regional conflict and instability.
The Pakistan Stock Exchange experienced one of its worst single-day crashes on Wednesday, plunging 6,560.82 points or 5.78%, following India’s announcement of aerial strikes on terror camps in Pakistan-occupied Jammu & Kashmir. The market tumbled minutes after opening, wiping out significant investor wealth amid intense geopolitical uncertainty.
Also read: How did stock market perform during India vs Pakistan Kargil War? Will history repeat itself?
The sell-off was sparked by India’s precision military operation, Sindoor, which targeted nine terror-linked sites—four in Pakistan and five in Pakistan-occupied Kashmir. This retaliatory strike was followed by a deadly terror attack in Pahalgam, triggering panic across markets. Investor sentiment crumbled as concerns mounted over potential escalation between the two nuclear-armed neighbours.
Further, the Pakistan Stock Exchange suspended trading on May 8 after the KSE-100 Index plunged 7 percent. Earlier in the session, the index had surged nearly 1,800 points, rebounding from steep losses on hopes of easing geopolitical tensions, before sharp volatility led to one of its worst single-day falls, declining by upto 8 percent or ~9,000 points.
At 2.01 pm, the index was trading at 103,060.3, down by 6,948.73 points or 6.32%. The fall comes on the heels of Wednesday’s (May 7) crash, when the KSE-100 plunged over 6,500 points, wiping out nearly 6%, marking a low of 107,007 and closing at 110,009. It marked one of the sharpest single-day declines in the bourse’s history, triggering panic across financial markets.
Written by Abhishek Singh
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