Karachi stock exchange crashes 3,000 points amid Pakistan-Afghanistan war

Karachi stock exchange crashes 3,000 points amid Pakistan-Afghanistan war

The Karachi 100 Index (KSE 100 Index) witnessed a major sell-off in its early morning session today, owing to the intensifying conflict between Pakistan and Afghanistan.

The index plunged more than 3,000 points to 165,813, reflecting widespread selling across sectors earlier today.

However, some buying at lower levels helped the KSE 100 Index recover some losses.

Pakistan conducting airstrikes in Afghanistan

Avinash Gorakshkar, a SEBI-registered fundamental equity analyst, attributed the KSE 100 Index's fall to the growing tensions over the Pakistan-Afghanistan war.

He said, "This fall in the KSE 100 Index can be attributed to the escalation of buzz over the Pakistan-Afghanistan war."

Reports indicate that after cross-border attacks from Afghanistan, Pakistan conducted airstrikes in Kabul and two other Afghan provinces early Friday.

Investment banks optimistic about upcoming IPOs

Despite the current market volatility, two of Pakistan's leading investment banks—Arif Habib Ltd. and Ktrade Securities Ltd.—have a combined pipeline of up to 16 IPOs over the next seven months.

The CEOs of both companies remain optimistic about their upcoming public offerings, citing attractive market valuations and favorable economic conditions as key factors for capital markets.

Open war declared between Pakistan and Afghanistan

Pakistan's Defense Minister Khawaja Mohammad Asif has declared an "open war" with Afghanistan after both countries launched strikes following an Afghan cross-border attack.

He claimed that the Taliban had turned Afghanistan "into a colony of India," gathered militants from around the world and begun "exporting terrorism."

The latest escalation of violence between the neighboring countries has put a Qatar-mediated ceasefire in jeopardy.