The Pakistan Stock Exchange (PSX) experienced a significant downturn on Wednesday morning, with the benchmark KSE-100 index dropping by nearly 6,500 points during intraday trading, marking a 5.78% decline.
The index fell to 107,007 points but later recovered to 112,143 points, reducing the loss to 1.25%. This volatility was attributed to heightened geopolitical tensions following recent Indian airstrikes on Pakistani territory.
READ MORE: India Strikes Pakistani Cities, Dozens Killed and Injured
Despite the initial panic, investor sentiment showed signs of stabilization, influenced by optimism surrounding the upcoming International Monetary Fund (IMF) board meeting, which is expected to decide on a loan tranche for Pakistan.
CEO of Topline Securities, Mohammed Sohail, noted that the market’s recovery indicates investor belief that the situation may not escalate further and that economic support from the IMF could bolster confidence.
