Karachi: The Pakistan Stock Exchange (PSX) faced a tough week as rising tensions between India and Pakistan affected investor confidence. In just three days, investors lost a massive Rs. 820 billion. The market saw a lot of ups and downs, with people unsure about what would happen next due to the ongoing military actions between the two countries.
On Friday, the market opened with mixed feelings but later showed signs of hope. The KSE-100 index gained 799.65 points, rising by 0.77 per cent, to reach 104,326.46 from the previous day’s close of 103,526.81. Although the market had dropped sharply earlier in the week, this small recovery gave investors some relief.
Military strikes spark fear
The sudden fall in the stock market was mainly due to the military conflict that began after a terror attack in Pahalgam, Jammu and Kashmir, on April 22. This attack killed 26 people and was said to have links to groups across the border. In response, India carried out precision air strikes under "Operation Sindoor" targeting terror camps in Pakistan and Pakistan-occupied Kashmir (PoK). This led to more tension, with Pakistan replying with heavy firing along the Line of Control (LoC), causing more casualties.
Experts advise long-term focus
Despite the market’s recent troubles, some financial experts say that these ups and downs are normal during times of conflict. Yousuf M Farooq, Director of Research at Chase Securities, advised investors to remain calm and stick to long-term investment plans. He said that during uncertain times, it’s important to stay patient and slowly build up investment portfolios.
Sana Tawfik, Head of Research at Arif Habib Limited, said that even though the market had dropped by 6.5 per cent over the past two days, Friday saw some recovery. She added that since there were no major war-related developments by the afternoon, the market calmed down a bit.
Investors return as panic fades
Other market experts believe that some investors are now taking a chance by buying stocks that have become cheaper after the recent fall. They believe the chances of a full war are low and that many stocks are now trading at attractive prices.
As tensions slightly eased, the market responded with a small upward move. While the situation is still uncertain, investors and experts are hoping for peace so that the market can return to normal.
(With PTI Inputs)
