Pakistan’s KSE100 Sheds 16,700 Points Since Tragic Pahalgam Terror Attack

The equity markets in Pakistan are reacting sharply following the heightened cross-border tensions. The KSE100 has lost nearly 16,700 points since the tragic terror attack in Pahalgam, Jammu and Kashmir, that killed 26 tourists.

On May 7, the Indian Armed Forces launched Operation Sindoor in Pakistan and Pakistan-occupied Kashmir by striking nine terror targets.

On Thursday, May 7, KSE100 tumbled 8,400.89 points or 7.64%.

By factoring in today’s fall, the index is down 16,659.18 points or 14.06%, compared to April 22’s closing of 1,18,430.35. On the other hand, Indian equity markets didn’t see a major decline and remained relatively calm.

“Since the 1990s, several high-stake India–Pakistan episodes—from Kargil and Parliament attacks to Uri and Pulwama—have tested nerves. But the Sensex has consistently demonstrated a remarkable immunity to sabre-rattling. Market corrections, if any, have been modest, short-lived and largely sentiment-driven. Fundamentals have prevailed,” Anand Rathi said in a note.

Notably, there are fears concerning the escalating tensions between the two nations as Pakistani PM Shehbaz Sharif vowed to retaliate against India’s Operation Sindoor. Moody’s had earlier warned that prolonged cross-border tensions could hamper Pakistan’s growth and strain the government’s finances, posing a threat to the country’s macroeconomic stability.