Pakistan Stock Exchange (PSX) plunged over 5,000 points on Monday after the United States and Iran failed to reach a peace deal at their historic 21-hour talks in Islamabad. Market trades on a cautious note in the opening session, and by midday, the benchmark KSE-100 (Karachi Stock Exchange) 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 or 2.73 per cent to 1,62,624.06 within two hours of trading starting on the floor.
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 per cent), with the index improving to 1,62,740.40, showing some stabilisation on the floor.
Sharp rise in global oil prices
Vice President JD Vance, who led the US delegation at the negotiations in Islamabad, said the Iranian side did not accept Washington's terms for ending the war even as the US presented its "final and best offer". Soon after, a sharp increase was seen in global oil prices, with crude benchmarks jumping over 7.73 per cent to exceed USD 102.6 per barrel.
Trump directs the US Navy to blockade the Strait of Hormuz
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.
Trump has said that the US Navy will "immediately" begin a blockade to stop ships from entering or leaving the Strait of Hormuz, after US-Iran peace talks in Pakistan ended without an agreement.
In Asian markets, South Korea's benchmark Kospi, Japan's Nikkei 225 index and Hong Kong's Hang Seng index ended lower, while Shanghai's SSE Composite index settled marginally higher. European markets were trading lower. Earlier on Friday, US markets ended on a mixed note.
ALSO READ | Lucknow to Kanpur in just 30 minutes: New expressway set to transform everyday travel
(This article is for informational purposes only and should not be construed as investment, financial, or other advice.)
