PSX tumbles over 2,800 points in intraday trade on back of uncertainty over US-Iran talks

The Pakistan Stock Exchange (PSX) benchmark KSE-100 index tumbled by over 2,800 points during intraday trade, breaking its four-day gaining spree.

Falling oil prices following the signing of the ‘Islamabad MoU’ between the United States and Iran had fueled optimism, triggering buying interest across multiple sectors. As a result, the KSE-100 index had maintained its recovery for the fourth straight session on Thursday.

On Friday, initial positive momentum pushed KSE-100 to an intraday high of 182,185.87 points at 10:14am. However, the market declined almost steadily from 10:30am onwards.

The KSE-100 index declined by 2,858.75 points (1.58 per cent) to stand at 178,539.46 at 12:03pm from the previous close of 181,398.21.

The downward trend followed the postponement of the planned US-Iran talks in Geneva, which were seen as a key step in the peace framework under the Islamabad MoU.

Awais Ashraf, director of research at AKD Securities, noted that the cancellation of the meeting, which was scheduled to initiate technical discussions between US and Iranian delegations, has “shaken investor confidence”.

The decline comes in contrast to the expectations of analysts, who had anticipated that the market would likely sustain its positive momentum, buoyed by easing geopolitical tensions and stable monetary policy. ...