Karachi, April 30, 2025 – The Pakistan Stock Exchange (PSX) witnessed a sharp downturn on Wednesday, following heightened geopolitical tensions between Pakistan and India. The KSE-100 Index closed at 111,326.57, falling by 3,545.61 points (down 3.09%) from the previous close of 114,872.18. The day’s lowest point hit 110,631.84, reflecting a 3.69% decline.
The market’s decline was linked to Pakistan’s information minister Attaullah Tarar’s late-night warning that India may launch a military strike within the next 24 to 36 hours. This triggered significant concerns among investors, leading to a flight to safety and a sell-off in the stock market.
“The market is reacting to the statement by the ministers that the next 24 to 36 hours could see nefarious actions from India,” said Ahfaz Mustafa, CEO of Ismail Iqbal Securities. He explained that uncertainty surrounding the situation led investors to liquidate their positions, thereby pushing the market lower.
Mohammad Sohail, CEO of Topline Securities, also highlighted that investor sentiment was shaken by the geopolitical risks, which led to caution and hesitation in the market.
The tension was further amplified by Information Minister Attaullah Tarar‘s televised statement, where he claimed that Pakistan had credible intelligence suggesting India was preparing military action, possibly using the Pahalgam attack in Indian-occupied Kashmir as a pretext. He warned that any aggression would be met with a decisive response from Pakistan.
Market Overview:
The stock market’s poor performance followed a volatile day, with the index experiencing a notable intraday dip. Even during the session’s high of 114,066.12 points, the market showed a 0.70% drop, signaling the overall bearish sentiment of the day.
On the economic front, the State Bank of Pakistan reported it had purchased $5.677 billion in foreign currency between June 2024 and January 2025 to support national reserves. However, January’s purchase of $154 million represented a significant decrease from the previous month’s purchase of $536 million, indicating a positive current account position.
Corporate Update:
Meanwhile, Pakistan Petroleum Limited (PPL) reported a decline in net profits for the nine months ending March 2025. The company’s net profit dropped by 25% year-on-year, reaching Rs72.7 billion. Quarterly profits for the company also decreased by 21% year-on-year, totaling Rs21.8 billion, with a 15% drop in net sales.
Despite the financial setbacks, PPL declared a dividend of Rs1 per share for the third quarter, bringing total payouts to Rs5 per share for the first nine months of the fiscal year.
