Pakistan's stock market halted trading for an hour this morning, following a decline in the Karachi 30 index (KSE30), according to a statement on the exchange's website.
The move was part of an automatic stop-loss mechanism that is activated when the index falls by 5% or more during a trading session. After trading resumed, the index continued its decline, falling 6.19% amid heavy selling pressure.
The decline comes amid waning investor sentiment following escalating military tensions with neighboring India following a militant attack last month in disputed Kashmir that left 26 people dead.
Yesterday, India carried out targeted military strikes against Pakistan, which claimed to have shot down five Indian aircraft. Pakistani Defense Minister Khawaja Asif described the incident in a television interview as "not hostile acts, we are just defending our territory."
"Reports of the downing of Indian drones in Pakistan indicate an escalation," Ali Raza, head of global equities trading at BMA Capital Management in Karachi, told Bloomberg.
"Unless there is a ceasefire or a diplomatic shift, tensions will remain high, which will weigh on investor sentiment," he added.
Follow the latest news on Google News
