- Summary:
- The Karachi Stock Exchange and the Benchmark KSE 100 Index are to be under pressure as neighbors face the middle of Pakistan's disease economy.
Pakistan's Karachi Stock Exchange was nosed on Wednesday while investors were in shock following an overnight attack by India in the country. The Benchmark KSE 100 index drops to five months lows of 107,007 points in the first hours of trading before recovering some land at 111,449 at the time of writing. The fall puts the index on the course to register the second consecutive monthly loss and increased losses during the year-to-date -3.3%.
India launched the missile strikes in Pakistan and Pakistan was administered Kashmir in early Wednesday, following attacks on tourists visiting Kashmir two weeks ago. Pakistan reported that 26 people were killed by Indian strikes, with 46 injuries. In addition, it claimed that it shot five India aircraft and a drone.
On the other hand, India reported 8 deaths from Pakistan's revenge. The conflict covers and is likely to continue to continue the downward pressure on the nuclear -armed economies.
The Karachi Stock Exchange had a great running last year, getting 52% at the time. In addition, it started 2025 on a strong note, rising to record 120,796 points in early February. Performance is a strict contrast from the Pakistan economy, which has been struggling for the last three years and has been rescued from the brink of the IMF financial support.
The State Bank of Pakistan (SBP) cut off interest rates by 100 basis points 11% two days ago on a bid to support the economy amidst tariff disruptions. However, the geopolitical pressure derived from its war with India may prove to be too strong for the struggling economy and drive less in Karachi's stock in the coming weeks.
Forecasting of Karachi Stock Exchange
The momentum in the KSE 100 index is to call for the additional downside below 112,723 points. The index is likely to find initial support at 114,816. Breaking below that level will signal a strong downward momentum that can go all the way to try 116,602 points.
Conversely, going above 112,723 will provide bullish control, with the first barrier that is likely to be at 109,933. Breaking the upper level will prove to the downside narrative. Also, such a momentum can expand the acquisitions to test 108,015 points.
