The intensifying armed conflict between India and Pakistan has sent shockwaves through the financial markets, leading to a significant downturn in stock indices.

The Karachi Stock Exchange witnessed substantial declines, with the KSE30 dropping by 1,071.28 points to close at 33,609.41, and the KSE100 plummeting by 3,559.48 points to 110,009.03, marking percentage decreases of 3.09% and 3.13%, respectively.

Trading volumes surged in response to the geopolitical tensions, with the regular market turnover reaching 550 million shares, up from 420 million the previous day. Despite increased activity, the market capitalization fell from 13.77 trillion to 13.34 trillion.

In the ready market, 356 companies saw their shares decline, with only 49 registering gains. Future markets mirrored this trend, with 329 companies reporting decreases. Despite the overall downturn, some firms experienced notable turnover, with WorldCall Telecom leading at 53.67 million shares traded.

Amid the turbulence, PIA Holding Company Limited and Unilever Pakistan Foods Limited managed to record gains, increasing their closing rates to 6,392.75 and 22,531.29, respectively. Conversely, Rafhan Maize Products Company Limited and Hoechst Pakistan Limited saw significant declines, closing at 8,824.44 and 3,185.00.

The market instability reflects investor apprehension over the escalating regional conflict, which continues to cast uncertainty over future market conditions.