Islamabad, Apr 24, 2025: The Pakistan Stock Exchange (PSX) witnessed a significant decline of 1,500 points in the KSE-100 index on Thursday.
This downturn occurred as investors responded to escalating tensions between Pakistan and India, which created an atmosphere of uncertainty in the market.
Amidst the prevailing political instability, many investors adopted a cautious stance, avoiding major financial risks.
The potential for shifts in diplomatic relations and economic conditions has led to a sense of unease among traders.
However, robust earnings from a few large corporations provided some relief, preventing the market from falling further.
Market analysts suggest that the trajectory of the stock market will largely depend on the evolving relationship between Pakistan and India in the near future.
Another key factor to watch is the upcoming announcement of the State Bank’s monetary policy, which is expected to influence investor behavior significantly.
Despite the downturn, there are some optimistic signals for Pakistan’s economy.
Inflation has dropped to historic lows, and the country’s current account is showing a surplus, indicating that the flow of funds into the country surpasses the outflow.
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These positive economic indicators are helping maintain a certain level of stability in the market, even amid unpredictable conditions.
Experts also predict that the Pakistani rupee may experience a modest depreciation in the coming days. They foresee the exchange rate hovering around Rs283 per US dollar.
While this decline is expected to be gradual, it is something that market participants are keeping a close eye on.
