Pakistan Stock Exchange plunges 3500 points due to increasing risk of showdown with India
Islamabad, Apr 30 (PTI): The Pakistan Stock Exchange (PSX) plunged by more than 3,500 points on Wednesday as uncertainty took hold due to increasing risk of a showdown with India.
Information Minister Atta Tarar said that India was planning military action against Pakistan in 26 to 36 hours, spreading panic in the market.
The market maintained a downward trend throughout the day and finally the index closed at 111,326.57, down by 3,545.61 or 3.09 per cent, from the last close of 114,872.18, according to the data provided by the PSX.
Analysts attributed the plunge to the uncertain security situation after the Pahalgam terrorist attack of April 22 that killed at least 26 people.
The Dawn newspaper reported that Mohammed Sohail, chief executive of Topline Securities, attributed the decline to “news of a likely attack in the next few days”.
Awais Ashraf, director research at AKD Securities, said, “Investors are worried about potential Indian military action against Pakistan, concerns that have intensified following the information minister’s press briefing.”
Yousuf M Farooq, director of research at Chase Securities, echoed the same sentiments. He said that the market was under pressure following the information minister’s “statement last night suggesting that India may take military action within the next 24–36 hours”.
“The market in the short term will most likely follow news flows of Pakistan-India tensions,” he added.
Sana Tawfik, head of research at Arif Habib Limited, also credited the slump primarily on geopolitical tensions between India and Pakistan.
Earlier in the day, Information Minister Tarar said that “credible intelligence” reports indicated that India was planning to conduct military action in the next 24 to 36 hours.
His statement came after India gave its military “operational freedom” to respond to the Pahalgam attack.
Let the Truth be known. If you read VB and like VB, please be a VB Supporter and Help us deliver the Truth to one and all.
India has agreed already to drop its tariffs to nothing: President Trump
New York/Washington, May 7 (PTI): US President Donald Trump on Tuesday said India has “agreed” to drop its high tariffs “to nothing”.
“I mean, India as an example, has one of the highest tariffs in the world. We’re not going to put up with that, and they’ve agreed already to drop it. They’ll drop it to nothing. They’ve already agreed. They would have never done that for anybody else but me,” Trump told reporters in the Oval Office.
Trump and visiting Canadian Prime Minister Mark Carney spoke to reporters as they met in the Oval Office to discuss the US-Canada trade.
“So we’re going to put down some numbers and we’re going to say our country is open for business and they’re going to come in and they’re going to pay for the privilege of being able to shop in the United States of America. It’s very simple. It’s very simple,” he added.
In the past, Trump has called India “tariff king” and a “big abuser”.
Last month, Trump had said that negotiations with India over a bilateral trade deal are “coming along great” and he thinks “we’ll have a deal with India”.
