PSX declines over 1,500 points on uncertainty over US-Iran talks in Islamabad

Uncertainty surrounding potential United States–Iran talks in Islamabad weighed on investor sentiment, pulling the benchmark KSE-100 Index of the Pakistan Stock Exchange (PSX) into negative territory. 

According to the PSX website, the benchmark KSE-100 Index dropped 1,253.54 points, or 0.72%, in early trading. The negative sentiment persisted as the session progressed, keeping the market in the red.

Selling pressure was observed across major sectors, including automobile assemblers, cement, commercial banks, oil and gas exploration companies, oil marketing companies, power generation and refineries. Key index-heavy stocks, including HUBCO, MARI, OGDC, PPL, HBL, MCB, MEBL and NBP, traded in negative territory.

The market closed at 171,579.30, down by 1,576.49 points or 0.91% from the previous day’s close. 

The decline follows a volatile session on Tuesday, when the market managed to close higher. The KSE-100 Index gained 959 points, or 0.56%, to settle at 173,155.79 points despite cautious investor sentiment.

Globally, markets showed a mixed response. United States stock futures rose after President Donald Trump said he would extend the Iran ceasefire indefinitely, while the dollar remained unstable.

The announcement was not confirmed by Iran or Israel, leaving uncertainty over the continuation of the ceasefire.

S&P futures rose 0.5% and Nasdaq futures gained 0.6% in early Asian trading.

MSCI’s broadest index of Asia-Pacific shares outside Japan declined 0.14% after reaching a seven-week high in the previous session, while Japan’s Nikkei index fell 0.2%.