Kolkata: A day after investors panicked and diluted their positions heavily leading to a crashed in the indices forcing the authorities to suspend trading, business resumed in Karachi Stock Exchange on Friday with the broad KSE 100 index staging a moderate recovery. Around 11:15 Indian Standard Time, the KSE 100 index stood 103,902.63 point, up 1,228.53 points or 1.20%. But around 11:30, the index was trading at 103,635.69, up 961.59 points or 0.94%.
On Thursday, the Pakistan Stock Exchange benchmark index dived 7.6%. It reached a low of 101,598.91 points on May 8 compared to the close on May 7 at 110,009.03. But the intraday figures were spectacular and recorded the biggest single-day drop since 2008 — KSE slid by as much as 9.2% from a high of 111,881.03.
Islamabad disowns X post for ‘international help’ on loans
While a part of the investor enthusiasm could be the possibility of buying in the dip, a significant part of it could also be attributed to the government disowning a social media post appealing to the ‘international partners’ of Pakistan for fresh funds, a direct reference to its crumbling economy in the face of the intensifying conflict with India.
On Friday morning a post on X purportedly by the Economic Affairs Division of Pakistan said, “Govt of Pakistan appeals to International Partners for more loans after heavy losses inflected (sic) by enemy. Amid escalating war and stocks crash, we urge international partners to help de-escalate. Nation urged to remain steadfast.”
But Islamabad quickly reacted and told the media that its official X account was hacked. It is quite clear that the statement from Pakistan government helped soothe investor nerves somewhat.
Panic spread after explosions in Pakistan cities
On the morning of May 8, panic gripped investors in Pakistan after multiple explosions rocked major cities such as Lahore, Karachi, Rawalpindi, Gujranwala, Chakwal, Attock, Bahawalpur, Mianwali and Chhor. Later around 2:30 pm the Indian government took responsibility for the attack.
Incidentally, since the Pahalgam terror attack on April 22 when Pakistan-backed terrorists killed 25 innocent tourists and one local, the KSE 100 has dropped by about 14%. The conflict comes at a very inopportune moment for Pakistan since of late there was an increase in investor confidence. In 2024, investors got highest returns in more than two decades and big AMCs such as BlackRock and Eaton Vance increased exposure in the Pakistan economy.
The rise in the index a day after a historic crash could be partly attributed to the government saying that its social media account was hacked and it did not appeal to international partners for help with fresh funds in the face of the conflict with India. Markets Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
