Shares in PSX bleed after late night Indian airstrikes on Pakistan

Following India's attack and Pakistan's subsequent retaliation, shares on the Pakistan Stock Exchange (PSX) plummeted by more than 6,000 points. Simultaneously, the Bombay Stock Exchange also reported a decline.

India targeted the civilian population in six Pakistani cities, including mosques in Bahawalpur and Muridkon the night of May 6-7. At least 26 Pakistanis martyred and 46 sustained injuries.  

The benchmark KSE-100 index plunged by 6,349.618 points or 5.70% to 107,296.63 points from previous closure 113,568.50 points on Tuesday. 

Read: Shares at PSX plummet by 6,200 points after global market crash on 'Black Monday' 

This marked the second decline in the year; earlier, the United States’ tariff tariff had severe consequences for the PSX last month.

On the other hand, the Sensex (BSE) noted a decrease of 80,000 points or more than 1%. 

However, Pakistan army’s effective response to India re-boosted the investor’s confidence, resulting in the recovery of shares with 4,067 points at 12:52 pm, leading the benchmark to 112,457.37. 

As per the PSX website, the current index at 12:54 pm showcased a recovery of 1,641 points compared to the previous close.

The director of research at Chase Securities stated that the market opened under pressure due to the Indian strikes on unarmed civilians in Pakistan. However, a recovery was witnessed after the situation cleared, and more recovery is expected once tensions begin to de-escalate. 

Read: Gold prices surge for second day in Pakistan

Shehbaz Ashraf of Frim Ventures stated that the conflict unsettled the investors’ trust, sparking fears of further escalation. However, analysts remain cautiously optimistic, hoping for a short-lived conflict with potential intervention from global powers. 

Market observers believed the correction could be temporary, but given improving macroeconomic signs, many were seeing the pullback as a buying opportunity, especially for long-term investors, who were seeking quality stocks at discounted prices.