RECORDER REPORT

KARACHI: The Pakistan Stock Exchange (PSX) experienced a sharp and broad-based decline on Wednesday due to rising geopolitical tensions between Pakistan and India.

The benchmark KSE-100 Index lost 3,545.60 points, or 3.09 percent, closing at 111,326.58 points on Wednesday, down from 114,872.18 points on Tuesday. The market opened on a negative note and remained under pressure, hitting an intraday low of 110,632 before recovering somewhat in the late hours. Trading volume at the ready counter increased to 490 million shares, up from 410 million shares in the previous session

Analysts at Topline said the local equity market decline broad-based on Wednesday, as intensifying geopolitical tensions between Pakistan and India sent shockwaves through investor sentiment.

On Wednesday, BRIndex100 opened at 12,154.23 points and closed at 11,775.43 points, which was 378.8 points or 3.12 percent lower than previous close with a total volume of 423.519 million shares. BRIndex30 also declined by 1,397 points or 3.89 percent to settle at 34,470.53 points, with a total volume was 281,445,375.

The downturn was primarily fuelled by fears of an imminent military escalation. The Minister for Information and Broadcasting disclosed that Islamabad has “credible intelligence” indicating that India may launch a military strike within the next 24 to 36 hours. The announcement triggered widespread risk aversion, with investors rushing to reduce exposure amid heightened uncertainty, they added.

Similarly, the total traded value on the ready counter surged to Rs 31 billion compared to Rs 29 billion in the previous session. The market capitalization decreased by Rs 428 billion to Rs 13.521 trillion. Out of 457 active scrips, 30 closed in positive and 352 in negative while the value of 52 stocks remained unchanged.

Cnergyico PK was the volume leader with 46 million shares and closed at Rs 7.09 followed by WorldCall Telecom that closed at Rs 1.25 with 41 million shares. B.O. Punjab ranked third with share trading of 20 million shares and it closed at Rs 9.12.

PIA Holding Company LimitedB and Unilever Pakistan Foods Limited the top gainers increasing by Rs 396.94 and Rs 369.75 respectively to close at Rs 4,366.33 and Rs 23,469.75, while Ismail Industries Limited and Rafhan Maize Products Company Limited were the top losers declining by Rs 105.68 and Rs 84.90 respectively to close at Rs 1,628.83 and Rs 8,950.33.

Analysts said that the benchmark index plunged by 3.09 percent end of the close, after hitting an intraday low of 4,240 points-a stark indicator of mounting market anxiety.

Key heavyweight stocks significantly contributed to the market’s fall. Notable laggards included LUCK, ENGROH, UBL, PPL, and FFC, which collectively pulled the index down by 1,132 points.

They said that stocks fell across the board after Govt reports of India intending to carry out military action against Pakistan. Rupee instability, slump in global crude oil prices and fears over outcome of heightened Pak-India border tensions played catalyst role in record bearish activity, they added.

BR Automobile Assembler Index closed at 21,656.39 points, posting a net loss of 809.32 points or 3.60 percent, with a total turnover of 6.79 million.BR Cement Index ended at 9,078.52 points, down by 370.48 points or 3.92 percent, with a total turnover of 62.66 million.

BR Commercial Banks Index settled at 32,271.23 points, declining by 833.65 points or 2.52 percent, with a total turnover of 50.48 million.BR Power Generation & Distribution Index closed at 18,755.10points, falling 547.71 points or 2.84 percent, with a total turnover of 28.09 million.

BR Oil & Gas Index dropped to 10,862.49points, reflecting a loss of 368.21 points or 3.28 percent, and a turnover of 53.40 million.BR Technology & Communication Index declined to 4,767.69points, shedding 148.61 points or 3.02 percent, with the highest turnover among the sectors at 65.29 million.