Pakistan’s stock market declined by 4 percent after the Pahalgam attack

Pakistan Stock Market: The terrorist attack in Pahalgam in Jammu and Kashmir has completely shaken Pakistan’s stock market. The Pakistan Stock Exchange benchmark KSE-100 index has declined by about 4 percent, while India’s Sensex has jumped up to 1.5 percent. This shows what is the effect of this fierce tension on the economies of both countries and how much investors are confident in.

Pakistan’s stock market condition

26 innocent people were killed in the brutal murder in Pahalgam on 22 April. Most of them were tourists. Neighboring country Pakistan is being held responsible for this terrorist attack. According to the Economic Times report, after this attack, the KSE-100 index of Karachi Stock Exchange has declined by 3.7 percent between April 23 and May 5.

The condition worse on 30 April

On April 30, the health of the Pakistani stock market deteriorated even more, when 3,545 points fell in a single day and it closed at 111,326.57. Heavy selling was also seen in large stocks like Luck, Engroh, UBL, PPL and FFC. Due to the shares of these companies alone, the KSE-100 index went below 1,100 points.

On May 2, the market saw a recovery of 2.5 percent, but the experts believe that this improvement in the market is fleeting, that is, it is not going to be too much. Experts say that there is no scope for improvement until the stress decreases.

Indian stock market condition

At the same time, despite the ongoing geopolitical tension on the other hand, India’s BSE Sensex has climbed up to 1.5 percent. Brokerage firm Anand Rathi says that except for the attack on Parliament in 2001, the Indian stock market has not declined by more than 2 percent in the time of tension with Pakistan. They also say that even if the situation deteriorates, even in the Nifty 50, there will be no decline of more than 5 to 10 %.

Warning for Pakistan’s economy

Global rating agency Moody’s also warned that a confrontation with India could have a bad effect on Pakistan’s economy. Moody’s says that if the stress remains intact for a long time, then there may be a problem in the funding received by Pakistan. This can increase pressure on foreign exchange reserves.

Also read:

After IMF and World Bank, Moody Agency estimates the growth of growth for the Indian economy, the impact from Pahalgam attack to tariff