Pakistan stock index nosedives by over 6%

Karachi: The Pakistan Stock Exchange plunged by over 6 per cent on Thursday with trading halted for an hour after rumours of escalation in military action by India near Karachi. Although the rumours were unfounded, the benchmark KSE100 index tumbled 6,948.73 points, or 6.32 per cent, to 1,03,060.30, before the trading was halted.

Trading resumed with Fatima Bucha of AKD Securities confirming the situation on the floor had calmed down a bit. “But the situation could get worse as investors are panicking due to the geopolitical situation,” she said. “No one is sure what is going to happen and how and if Pakistan will respond to India's aggression.”

The downward trajectory of the index was largely driven by negative contributions from key stocks such as cement, energy, bank, and technology, which collectively dragged the index down. Meanwhile the government has taken measures to keep its foreign exchange reserves stabilised. It has imposed a 60-day ban on importing and exporting precious metals, jewellery, and gemstones from Thursday. The temporary ban was imposed by a Commerce Ministry Order suspending SRO760 of 2013, which governs the trade of precious metals.