The equity market fell on Monday as investors turned risk-averse amid renewed uncertainty over US-Iran negotiations, while a fresh jump in oil prices and softer global equities weighed on sentiment.
The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index traded between a high of 174,523.76 (up 584.75 points, or 0.34%) and a low of 169,226.56 (down 4,712.45 points, or 2.71%) compared to the previous close of 173,939.01.
“Stocks witnessed selling amid concerns over reignited US-Iran tensions,” said Ahsan Mehanti, Managing Director and CEO of Arif Habib Commodities, while speaking to Geo.tv.
“Surging Govt bond yields, falling global equities and surge in global crude oil prices played catalyst role in bearish activity at PSX,” he added.
Iran’s foreign ministry spokesperson Esmail Baghaei said Tehran has no plans for a second round of negotiations with the United States for now, signalling continued uncertainty over whether diplomatic engagement will resume.
Iranian state media also cited sources as saying there were no immediate plans to participate in the next round of Iran-US talks in Pakistan, while Fars and Tasnim reported that lifting the US blockade was a precondition for negotiations.
Oil prices surged as Iran said it had closed the Strait of Hormuz again over the weekend, a day after reopening it, citing the US blockade of Iranian ports.
The move came days before the end of a two-week ceasefire, and followed reports that an American destroyer fired on and seized an Iranian vessel that tried to evade the blockade, with Tehran warning it would retaliate. WTI jumped more than 7% at one point and Brent added more than 6%, according to the market update provided.
In the previous session, the PSX witnessed a strong rally on Friday as the KSE-100 index surged 4,027.06 points, or 2.37%, to close at 173,939.01. The index touched an intraday high of 174,404.03 and a low of 170,758.26.
