Stocks fell on Thursday as renewed unease over the Middle East peace track weighed on sentiment after Iran’s stance raised doubts about an early de-escalation.
The Pakistan Stock Exchange’s benchmark KSE-100 index traded between a high of 157,591.23, down 722.21 points or 0.47% and a low of 156,251.57, down 2,061.87 points or 1.3% from the previous close of 3144.3144.354.
“It is the negative sentiment that the peace proposal has been rejected by Iran, which signals continued hostility,” said AAH Soomro, an independent investment and economic analyst.
“It’s a purely sentiment driven market so far. The economy is edgy but pushing forward,” he added.
Oil prices steadied this week as investors still held out hope for a deal, with Brent just above $100 and WTI around $90, although the virtual closure of the Strait of Hormuz, through which about 20% of global oil and gas passes, continued to cast a shadow over markets.
Asian shares were mixed after a two-day rally, with Tokyo, Hong Kong, Shanghai, Seoul, Manila and Jakarta lower, while Singapore, Wellington and Taipei rose and Sydney was flat.
Markets had found support since late Monday after US President Donald Trump backed away from a threat to destroy Iran’s energy infrastructure and said the two sides were in peace talks. Washington has presented a 15-point plan to end the war, while Iran’s state-run television reported that officials had laid out five conditions for an end to hostilities.
Trump on Wednesday threatened to “unleash all hell” if Iran does not strike a deal, although he also said Iran was participating in peace talks, while Foreign Minister Abbas Araghchi said Iran had no intention of negotiating.
In the previous session on Wednesday, the KSE-100 gained 4,347.08 points, or 2.82%, to close at 158,313.44 from 153,966.36. The index hit an intraday high of 158,586.09 and a low of 155,199.71.
