Pakistan’s benchmark KSE-100 Index experienced significant fluctuations this week. It initially dropped sharply on Monday following unsuccessful US-Iran discussions but rebounded strongly the next day on hopes of renewed diplomacy. The index plummeted by almost 4,800 points at the market opening, indicating widespread panic selling across various sectors.
During early trading on Monday, the index stood at 162,396.21, showing a decline of 4,795.16 points, or 2.87 percent. The market saw a broad-based sell-off with notable losses in sectors like automobiles, cement, banking, oil and gas, power, and refining stocks. Key index-heavy stocks such as Attock Refinery Limited, Hub Power Company, and others traded in the negative territory, dragging the benchmark down.
The decline was triggered by remarks from JD Vance, signaling the end of talks with Iran without a breakthrough. Disagreements over US conditions, especially related to commitments on nuclear weapons development, contributed to the uncertainty. Mohammad Baqer Qalibaf also expressed caution about an immediate agreement, citing deep mistrust despite recent indirect negotiations facilitated by Pakistan.
Last week’s optimism, which saw the KSE-100 gaining over 1,600 points, was reversed by this setback. However, investor sentiment improved on Tuesday, leading to a significant surge in Pakistan’s stock market. The KSE-100 soared by nearly 4,000 points as investors anticipated potential new peace talks between the US and Iran.
