The US-Israel-Iran military conflict has hit several stock markets worldwide. There was bloodbath on Pakistan stock exchanges as investors lost billions of rupees as Karachi Stock Exchange crashed. The market turned extremely volatile, which forced the authorities yo halt trading.
Monday morning turned out to be a ‘Black Monday’ for the Pakistani stock market. Karachi Stock Exchange’s main index, KSE-30, plummeted by nearly 9.8 percent. Importantly, it is largest single-day drop in the history of Pakistan’s stock market. The selling pressure was so high that trading had to be suspended for an hour. Later, when the trading resumed, the decline eased to 7.3 percent.
The market had closed at 168,062.17 points in the previous session, but crashed to 152,916.77 points on Monday morning. However, later it made some recovery. The steep fall pushed the Pakistani market into a ‘bear market’ (a period of downturn), as fell more than 20 percent from its peak in January.
The huge fall in the Pakistan stock market was a result of the military conflict between US-Israel and Iran, Pakistan’s internal issues and border disputes. It may be noted, that following US-Israel’s joint military action against Iran, pro-Tehran supporters have took to the streets in Pakistan. On Sunday, nearly 30 people were killed in a violent clash between protesters and police at the gate of the US Consulate in Karachi.
Notably, Pakistan is having a tough time because of the clashes with Afghanistan. Islamabad has declared “open war” with Afghanistan. Deadly cross-border attacks have been taking place both sides.
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