Pakistan’s KSE-100 Index partially recovered on Wednesday, closing at 3,559.48 points or a 3.13% drop triggered by Indian missile strikes and Pakistan’s retaliation. Despite heavy selling, market confidence and global optimism fueled a 4,500-point rebound.
On May 7, 2025, the KSE-100 Index plummeted to an intraday low of 107,007.68, down over 6,500 points, before recovering to close at 110,009.02, a 3.13% or 3,559.48-point loss, per Bloomberg.
The selloff, sparked by India’s missile strikes on six Pakistani locations, including Bahawalpur and Kotli, saw Pakistan down five Indian jets and a drone, per Dawn. Major sectors like banking, oil and gas, and power stocks like OGDC, PPL, and HUBCO traded heavily in the red, reflecting panic.
🚨🔻Karachi Stock Exchange KSE-100 Index
KSE100:IND
(PKR) · Market open
107,007.69 🔻6,468.67 (–5.70%)#StockMarket #KSE100 #KarachiStockExchange #IndiaPakistanTensions pic.twitter.com/OeWngVrrOu
— Moneycontrol (@moneycontrolcom) May 7, 2025
The strikes, killing 26 Pakistanis, followed India’s unproven claim of Pakistan’s role in the April 22 Pahalgam attack, per Reuters. Pakistan’s National Security Committee authorised robust retaliation, per Al Jazeera. Globally, markets gained from US-China trade talks and China’s rate cuts, with S&P 500 futures up 0.9% and Hang Seng rising, per CNBC. Analysts, cited by Business Recorder, remain optimistic about Pakistan’s IMF-backed reforms despite the turmoil.
Pakistan’s KSE-100 Index, rocked by a 6,500-point plunge on May 7, 2025, amid India-Pakistan military clashes, rallied 4,500 points to close at 110,009.02. Fueled by de-escalation hopes and global market gains, the recovery underscores economic resilience. As tensions linger, investors eye stability and reforms.