The Pakistan Stock Exchange (PSX) on Thursday witnessed selling pressure as the benchmark KSE-100 Index dropped 2,206.33 points, or 1.88%, to close at 115,019.81.
The sharp decline is attributed to escalating geopolitical tensions between Pakistan and India.
Investor sentiment turned bearish following India’s suspension of the Indus Waters Treaty with Pakistan. The move came in the wake of a deadly attack in Pahalgam, located in Indian Illegally Occupied Jammu and Kashmir (IIOJK), which left 26 tourists dead.
New Delhi has blamed Pakistan for the incident, exacerbating bilateral strains and rattling financial markets.
Despite the stock market downturn, the Pakistani rupee saw a slight improvement against the US dollar. During intra-day trading in the inter-bank market, the local currency appreciated by 0.01%, or four paisas, reaching 280.93 against the dollar by 9:48 AM.
This marks a minor gain from Wednesday’s closing rate of 280.97.
