Pakistan Stock Exchange (PSX) witnessed a steep decline at the start of trade today as the KSE-100 index threw itself with 2,485 points early in the session and fell to 114,740 points.
As the day progressed, the market showed signs of slight recovery and narrowed the loss to 1196 points. At noon, the current index was 116,030.02 points.
This sharp dip comes in the midst of the ongoing volatility in the latest trade sessions. While the market had previously touched at a height of all the time and crossed the 120,000 mark earlier this year, the mood has since turned Bearish, with falls registered for consecutive days, including yesterday.
Market analysts attribute the fluctuations to investor insurance and profits after the recent rally.
The drop follows tension between New Delhi and Islamabad in the wake of a deadly attack in Pahagam, Indian illegally occupied Jammu and Kashmir (IIOJK), where 26 tourists were killed and 17 others wounded.
India had suspended the Indus Waters Treaty of 1960 with immediate effect, closed Attari-Wagah border crossing and forbidden Pakistani nationals to enter the country. Those who were already in India were ordered to leave within 48 hours.
Furthermore, the Indian government published all Pakistani military advisers from Pakistan High Commission in New Delhi and remembered his own military service advisers and aid staff from the High Commission in Islamabad.
India also requested Pakistan to reduce the strength of his diplomatic staff in New Delhi from 55 to 30, signaling a sharp downgrade in diplomatic relations.
