Pakistan Stock Exchange plunges 5,000 points after US-Iran talks fail

Pakistan Stock Exchange (PSX) plunged over 5,000 points on Monday after the US-Iran peace talks in Islamabad ended without any breakthrough. Trading started on a cautious note and by mid-day, the benchmark KSE-100 Index fell sharply by 5,353.

67 points as heavy selling was witnessed by investors at the outset. The KSE-100 Index dropped 4,567. 31 points (-2. 73%) to 162,624. 06 within two hours of trading starting on the floor.

Partial recovery amid intra-day volatility Later, despite the intra-day volatility, the index showed signs of recovery as the bourse trimmed some losses to 4,450. 97 points (-2. 66%), with the index improving to 162,740.

40 showing some stabilisation on the floor. Oil price surge adds to market jitters As the peace talks remaining inconclusive, a sharp surge was seen in global oil prices with crude benchmarks jumping over 7 per cent to exceed USD 100 per barrel.

US President Donald Trump’s announcement of a blockade on maritime traffic to and from Iranian ports via the Strait of Hormuz also added to a panic selling mode by investors.

Analysts cite geopolitical uncertainty Kaukab Farshori of Capital Investments said the volatile environment was expected on the opening day of the week because of the uncertain global geopolitical situation.

The lack of immediate clarity and continuation of negotiations between Iran and the US, he said, weighed on investor confidence.