Selling engulfs PSX, KSE-100 down nearly 3,000 points after US-Iran talks canceled
- Benchmark index was hovering at 178,539.46 points
After a positive start to trading, selling pressure was observed at the Pakistan Stock Exchange (PSX) after talks that had been planned for Friday between the United States and Iran in Switzerland will not take place, with the benchmark KSE-100 Index shedding nearly 3,000 points during the first half of the trading session.
At 12pm, the benchmark index was hovering at 178,539.46 points, down by 2,858.75 points or 1.58%.
Selling was observed in key sectors, including automobile assemblers, cement, commercial banks, oil and gas exploration companies, OMCs, power generation and refinery. Index-heavy stocks, including HUBCO, MARI, OGDC, PPL, POL, PSO, MCB, MEBL and UBL, traded in the red.
US Vice President JD Vance pulled out of a planned trip to meet Iranian negotiators in Switzerland on Friday to begin complex talks on implementing the 14-point agreement, opens new tab struck between Tehran and Washington to end their war, opens new tab, a White House spokesperson said.
US officials said this week they would hold a formal signing ceremony for the US-Iran agreement in Geneva, but Iran’s foreign ministry cast doubt on that, saying it was unnecessary after both countries’ presidents signed the agreement on Wednesday.
On Thursday, the PSX extended its bullish momentum as declining international crude oil prices and growing optimism surrounding a potential peace agreement between Iran and the United States continued to strengthen investor confidence, triggering broad-based buying across key sectors. The benchmark KSE-100 Index gained 887.20 points, or 0.49%, to close at 181,398.22 points.
Internationally, shares climbed to record highs in Japan and South Korea on Friday as peace in the Middle East, with the reopening of the Strait of Hormuz, pulled oil prices even lower and eased inflation fears.
The US dollar was on a tear, hovering near a 13-month high on its major peers, after a hawkish turn from the Federal Reserve led markets to price in more than one rate hike this year. That dragged the yen to the weakest level in two years and intensified speculation that Japanese authorities might have to intervene soon and stem the currency’s slide.
Oil tankers have started sailing through the Strait of Hormuz after the United States lifted its blockade on Iran on Thursday as an interim deal to end the three-month war took effect. Brent crude futures dropped 1% on Friday to $79.03 a barrel, and were down 9.5% for the week.
Share markets have had a blockbuster week.
Japan’s Nikkei gained 0.8% to hit a new record for the fifth straight session, extending its weekly gain to 8.5%. South Korea jumped 3.1%, adding to its weekly rise of 15.3%.
Mainland China and Hong Kong’s stock markets are closed for the Dragon Boat Festival holiday. Taiwan was also on holiday.
This is an intraday update