Pakistan’s Stock Market Falls After April 22 Due to Tensions

Pakistan’s stock market has dropped nearly 4% since April 22, mainly due to rising tensions between India and Pakistan after a terrorist attack in Jammu & Kashmir.

The KSE-100 index, which tracks major companies on the Pakistan Stock Exchange, saw its biggest fall on April 30, losing over 3% in one day. Important companies like Lucky Cement, Engro, UBL, PPL, and Fauji Fertilizer lost value as investors started selling their shares.

There was a small recovery on May 2, when the market went up by 2.5%, but experts say that may not last long. Many investors are still worried because of the political situation.

At the same time, India’s stock market has gone up by 1.5%, showing that investors are more confident in India’s economy despite the tension in the region.

A report from Moody’s, a global financial agency, warned that if tensions continue, it could hurt Pakistan’s economy. Even though inflation is slowly coming down and foreign reserves are improving with help from the IMF, new conflict could damage that progress.

As of May 6, the KSE-100 closed at 113,568 points, which is lower than the previous day. This shows that investors are still being careful because of the uncertain situation.