The Pakistan Stock Exchange (PSX) experienced a significant downturn on Wednesday, with the benchmark KSE-100 Index plummeting by 3,545.61 points, or 3.09%, to close at 111,326.57. The drop was driven by rising geopolitical tensions following a late-night warning from the federal government that India may initiate military action within the next 24 to 36 hours.
The day’s high stood at 114,066.12 points—still down by 806.06 points (0.70%)—while the intraday low hit 110,631.84, reflecting a steep decline of 4,240.34 points or 3.69%.
Market analysts attributed the sharp fall to investor anxiety after ministers warned of a potential Indian strike, which could be justified by a recent incident in Indian Illegally Occupied Jammu and Kashmir (IIOJK). CEO of Ismail Iqbal Securities, Ahfaz Mustafa, stated, “Investors are shifting to safer options amid the threat of possible aggression.” Mohammad Sohail, CEO of Topline Securities, added that the current uncertainty has made the market highly sensitive.
In a televised briefing, Information Minister Attaullah Tarar claimed Pakistan had credible intelligence regarding India’s alleged plans to conduct “nefarious actions,” using the Pahalgam attack as a pretext. He asserted that any hostile move would be met with a decisive response.
On the macroeconomic front, the State Bank of Pakistan disclosed that it had purchased $5.677 billion from the interbank market between June 2024 and January 2025 to strengthen foreign exchange reserves. January’s purchase totaled $154 million, a decrease from December’s $536 million, owing to a more stable current account.
In corporate news, Pakistan Petroleum Limited (PPL) reported a 25% year-on-year drop in net profit for the nine months ending March 2025, with earnings of Rs72.7 billion. The quarterly profit declined by 21% to Rs21.8 billion, and net sales dropped 15% compared to the previous year. A Rs1 per share dividend was declared for the third quarter, bringing total payouts for 9MFY25 to Rs5 per share.
On the previous trading day, the PSX had closed in positive territory, with the KSE-100 Index gaining 808.28 points (0.71%) to end at 114,872.18.
