PSX plunges into bloodbath, loses over 8,300 points amid Indian escalation

Amid escalating tensions between Pakistan and India, investor trust in the Pakistan Stock Exchange (PSX) has been declining. Trading was halted following a sharp decline of over 8,000 points in the KSE-100 index benchmark. 

Multiple locations in Pakistan were targeted by Indian drones on Thursday, and at least 31 Israeli-made Harop drones were neutralised by the air defence syste, according to the Inter-Services Public Relations (ISPR), 

On Wednesday, the KSE-100 had dropped by 3.13%, or 3,559.48 points, closing at 110,009.02 following a sharp sell-off driven by geopolitical uncertainty.

Initial optimism about de-escalation boosted the market early on, but concerns over potential military retaliation and uncertainty surrounding India's next move dampened investor sentiment, leading to significant losses. 

The increasing intensity of the situation led investors to avoid investing in shares. Recently, the KSE-100 index benchmark plummeted to 101,642.81, or nearly 8%, after losing 8,366.21 points at 1:43 am. 

Read: Shares in PSX bleed after late night Indian airstrikes on Pakistan

Following the bloodbath in the PSX, trading was halted for a while; however, upon reopening, a similar bearish trend was observed.

AAH Soomro, an independent investment and economic analyst, attributed the decline to the "nervousness" among people during the border uncertainty. 

"Thankfully, the US has intervened, and both countries' National Security Advisers have established contact. Let's pray that peace prevails," he added.