The Pakistani Stock Exchange (PSX) witnessed a positive transformation on Thursday, with the rise of the KSE-100 index by 1.7 %, or 1850 points, amid expectations that may cool the tensions between Pakistan and India.
According to the PSX website, the market was opened with a positive note, where the standard indicator of indicators is traded at 111,530.37 points at 09:40, an increase of 1.38 % over the end of the previous day of 110,009.02 points.
Increasing the last market has been attributed to expectations that the ongoing conflict between nuclear armed neighboring neighboring can get rid of reform due to mediation by friendly countries. This optimism is followed by a deadly air strike from the Indian Air Force on the night of May 6 and 7, which targeted multiple locations in Pakistan, the mainland, which led to more than 30 deaths and more than 50 injuries.
On Wednesday, the National Security Committee (NSC) allowed the Pakistani armed forces to take the corresponding measures in response to the Indian air strikes, which targeted the civilian areas. In response, according to media reports, Pakistan has shot down five Indian fighter planes.
The impact on the stock market was great on Wednesday. KSE-100 lost 6 % in the early morning after the Indian air strikes, but it regained most of its losses by the end of the day, and ended with a decrease of 3.13 %.
From April 23 to May 6, the market has already lost 4.1 % on nine sessions amid the increasing uncertainty on a possible Indian attack.
Despite these tensions, the stock market in Pakistan remained faded, even in the face of the main positive developments within the country, such as the meeting of the Board of Directors of the International Monetary Fund to be held on May 9 for the first review of the International Monetary Fund program in Pakistan, a 100 -bit reduction in the policy rate, and a low reading in low records 0.3 % from April 2025.
When evaluating the former Indian conflicts, such as Pulwama/Balakot case in February 2019 and URI Strikes in September 2016, the market did not interact negatively as it did this time.
At a surprising turn, the revenue of euro and Sukuk bonds in Pakistan improved in international markets by 18-61 bits per second after decreasing by 160b per second over the past 8-9 days.
