The Pakistan Stock Exchange (PSX) saw a major drop of 1,500 points in the KSE-100 index on Thursday. This decline came as investors reacted to growing tensions between Pakistan and India, causing uncertainty in the market.
Due to the political situation, investors were cautious and avoided taking big risks. There are concerns about possible changes in diplomacy and the economy, which made many traders nervous. However, strong profits reported by some large companies helped reduce the pressure slightly, giving the market a little support.
Experts say the market’s future will depend a lot on how relations between Pakistan and India develop in the coming days. Another important factor is the State Bank’s upcoming monetary policy announcement, which will likely affect investor decisions.
Despite the drop, there are still some positive signs for Pakistan’s economy. Inflation has reached a record low, and the country’s current account is showing a surplus—meaning more money is coming into the country than going out. These indicators are helping to keep overall market stability intact, even during uncertain times.
Financial analysts also believe that the Pakistani rupee may see a slight fall in value in the near future. They are forecasting the exchange rate to be around Rs283 per US dollar. This expected change is not too steep but is something investors will be watching closely.
