PSX Faces Selling Pressure, KSE-100 Plunges

The Pakistan Stock Exchange (PSX) experienced significant selling activity as the benchmark KSE-100 Index began trading negatively, shedding nearly 1,750 points during Wednesday’s intraday session.

As of 10:30 am, the KSE-100 stood at 113,117.11, reflecting a decrease of 1755.07 points or 1.53% compared to the previous day’s closing figure.

On the preceding day, Tuesday, the benchmark index concluded trading at 114,872.18.

Escalating tensions between Pakistan and India, stemming from the Pahalgam incident, have exerted downward pressure on the stock market since the past week.

Information Minister Attaullah Tarar issued a warning early Wednesday regarding a potential military incursion by India into Pakistan within the following 24 to 36 hours.

The minister stated in a press briefing and on social media that Pakistan possesses reliable intelligence indicating India’s intention to initiate a military strike, utilizing the Pahalgam incident as a fabricated justification.

Globally, stock performance was mixed on Wednesday, and oil prices declined as concerns about a deteriorating economic outlook and unfavorable reports from corporations affected by tariffs imposed by Donald Trump counteracted optimism surrounding a possible easing of global trade tensions.

US Treasury yields remained near multi-week lows as traders increased expectations for further rate reductions by the Federal Reserve to bolster the world’s largest economy.

Despite Trump’s efforts to mitigate the impact of auto tariffs and indications of advancement in broader trade negotiations, specific details are limited. Commerce Secretary Howard Lutnick mentioned reaching an agreement with a foreign government.

Adding to concerns about tariffs, investors also contended with declining US economic data as Trump’s substantial tariffs impacted domestic businesses and consumers.

David Kohl, chief economist at Julius Baer, stated that they are raising the probability of an extended period of economic stagnation in the coming months, potentially meeting the criteria for a recession, to 50%.

This information constitutes an intraday update.