The Pakistan Stock Exchange (PSX) observed selling pressure on Thursday, with the KSE-100 Index shedding nearly 5,000 points amid rising geopolitical uncertainty after Iran rejected a US-backed ceasefire proposal.
At 3pm, the benchmark index was hovering at 153,333.77, down by 4,979.67 points or 3.15%.
Selling pressure was observed in key sectors, including automobile assemblers, cement, commercial banks, oil and gas exploration companies, OMCs and power generation. Index-heavy stocks, including MCB, MEBL, NBP, MARI, OGDC, PPL, POL, PSO and HUBCO, traded in the red.
Iran rejected a US proposal aimed at ending the ongoing war, setting out five conditions for a ceasefire, including international recognition and guarantees of Iranian sovereignty over the Strait of Hormuz, insisting that any halt to hostilities will occur solely on Tehran’s terms and timetable, state-run Press TV reported on Wednesday, citing a senior Iranian political-security official.
“Iran’s ‘high bar’ for ceasefire talks, demanding reparations and full control of the Strait, has made investors realise that a final deal is still far off,” said Behtari Capital.
On Wednesday, PSX staged a powerful recovery as renewed diplomatic momentum in the Middle East and softening global oil prices triggered broad-based buying across sectors, lifting the benchmark KSE-100 Index by more than 4,300 points in one of the strongest single-day performances in recent weeks.
The KSE-100 Index settled at 158,313.45 points, gaining 4,347.08 points or 2.82%.
Globally, Asian stocks struggled for direction while the dollar held firm on Thursday as investors treaded cautiously amid dizzying developments in the Middle East, where Iran said it would weigh a U.S. proposal to end the Gulf conflict.
The widening war has jolted global markets, sending oil prices soaring, reigniting inflation fears and scrambling global rate expectations.
It was a mixed picture in Asia in early trading with Japan’s Nikkei up 0.6% while South Korean stocks were down 1.2%. MSCI’s broadest index of Asia-Pacific shares outside Japan edged 0.23% lower, set for a 8.7% decline in the month, its biggest monthly drop since October 2022.
The dollar held firm near recent highs and was on track for a 2% monthly gain, cementing its status as the markets’ preferred safe haven.
The latest comments by Iran suggested some willingness by Tehran to negotiate an end to the war if its demands were met. The U.S. sent a 15-point ceasefire proposal to Iran that was originally brushed aside by Iranian officials.
This is an intra-day update
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