Geopolitics Rattles Pakistan Stocks: KSE-100 Crashes 4,800 Points

(MENAFN- IANS) New Delhi, April 14 (IANS) Pakistan's benchmark KSE-100 Index witnessed sharp volatility this week, plunging in early trade on Monday after US-Iran talks failed to yield a breakthrough, before staging a strong rebound a day later on hopes of renewed diplomacy.

The index tumbled nearly 4,800 points within minutes of the market opening on Monday -- reflecting panic selling across sectors.

During early trade on the same day, the gauge was trading at 162,396.21, down 4,795.16 points, or 2.87 per cent.

The sell-off was broad-based, with heavy losses seen in automobiles, cement, banking, oil and gas, power and refining stocks.

Key index-heavy stocks such as Attock Refinery Limited, Hub Power Company, Mari Energies Limited, Oil and Gas Development Company, Pakistan Oilfields Limited, Pakistan Petroleum Limited, Pakistan State Oil, Sui Southern Gas Company, Sui Northern Gas Pipelines Limited and Wafi Energy Pakistan all traded in the red, dragging the benchmark lower.

The decline came after comments by JD Vance, who said that his negotiating team was leaving Pakistan after nearly 21 hours of talks with Iran ended without a breakthrough.

He pointed to disagreements over US conditions, particularly those linked to commitments on nuclear weapons development.

Echoing the uncertainty, Mohammad Baqer Qalibaf signalled limited expectations for an immediate agreement, citing deep mistrust despite the latest round of indirect negotiations facilitated by Pakistan.

The setback reversed the optimism seen last week, when the KSE-100 had gained 1,673.87 points, or 1.01 per cent, to close at 167,191.38 amid hopes that easing geopolitical tensions between Washington and Tehran would support investor sentiment and reduce regional risk premiums.

However, sentiment turned positive again on Tuesday, with Pakistan's stock market surging sharply.

The KSE-100 jumped nearly 4,000 points as investors bet on the possibility of fresh US-Iran peace talks.

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