This study investigates the effect of a failed terror attack on stock market returns using an event study approach. The mean-adjusted returns and the market model are used to analyse the event. The results show that the failed attack on the Pakistan Stock Exchange building in Karachi generated positive cumulative returns for all the listed stocks, suggesting that such events have positive effects on stock market returns.

1. Geopolitical events represent sudden, unanticipated shocks to market participants, providing natural experiments for studying equity price adjustment. On 28 February 2026, Israeli occupation lau...

We examine the effect of the Capital Market Authority’s decision to cancel an entire day’s trades on the returns of listed banks. To investigate the impact of this event, we use the event-study method and apply it over a defined period. Our results provide evidence of a significant negative effect from the cancellation of a day’s trading on banks’ returns over the examined period. However, further analysis indicates that this effect turned insignificant once additional announcements that found favour with investors were made. These findings confirm the harmful cost of cancellation decision that first-ever happened in the financial markets.