Karachi, April 30, 2025 – The Pakistan Stock Exchange (PSX) witnessed a steep fall on Wednesday, shedding a massive 3,545 points due to escalating tensions between Pakistan and India.
The benchmark KSE-100 index closed at 111,327 points, down from the previous day’s 114,872 points, reflecting a 3.09% drop driven largely by geopolitical fears.
The sharp plunge in PSX was sparked by reports of increasing Indo-Pak tensions, with concerns of possible military escalation triggering widespread panic among investors. The Minister for Information revealed that Pakistan has “credible intelligence” suggesting India might launch a military strike within 24 to 36 hours. This alarming announcement intensified market anxiety and drove a wave of risk-averse selling.
According to Chase Securities, the fall was broad-based, with major pressure on the banking sector (-713 points), cement sector (-556 points), and exploration and production (E&P) stocks (-514 points). Heavyweight companies like LUCK, ENGROH, UBL, PPL, and FFC collectively dragged the index down by 1,132 points.
Topline Securities reported that the KSE-100 even touched an intraday low of 4,240 points, showcasing the severe impact of the growing tensions. Despite the heavy losses, market participation remained steady. The total traded volume at PSX stood at 617.6 million shares, with a market turnover of PKR 40.3 billion. CNERGY led the charts with 46 million shares traded.
Another key factor contributing to the PSX downturn was uncertainty surrounding upcoming macroeconomic events. Investors remained cautious ahead of the inflation data release and the State Bank’s Monetary Policy Statement scheduled for May 5, both of which could sway market direction.
If Indo-Pak tensions ease in the coming days, analysts expect investors to refocus on domestic financial indicators and policy direction. However, as long as geopolitical instability persists, PSX is likely to remain under pressure, with further points losses not ruled out.
This latest PSX crash underscores how quickly tensions can wipe out investor confidence. Market experts stress that calming political rhetoric and regional diplomacy are essential for restoring stability to the PSX and preventing further points erosion in the face of geopolitical uncertainty.