Karachi: Pakistan Stock Exchange (PSX) nosedived over 5,000 points on Monday after the US-Iran peace talks in Islamabad ended without any positive result. Traders adopted caution and by mid-day, the benchmark KSE-100 Index dropped by 5,353.67 points as heavy market players resorted to heavy selling. The KSE-100 Index plunged 4,567.31 points to 162,624.06 within two hours of trading starting on the floor.
Later, the KSE-100 Index recovered some losses and improved to 162,740.40 showing some stabilisation on the floor. The crude oil priced soared as the US-Iran peace talks failed in Islamabad. The global oil prices jumped with crude benchmarks jumping over 7 per cent to exceed USD 100 per barrel.
Following the inconclusive talks with Tehran, US President Donald Trump announced a blockade on maritime traffic to and from Iranian ports via the Strait of Hormuz, which resulted to panic selling mode by investors.
The uncertain global geopolitical situation arising out of the West Asia crisis, Kaukab Farshori of Capital Investments said volatile environment was expected on the opening day of the week.
The expert said investors’ sentiments was hit due to lack of immediate clarity and continuation of negotiations between Iran and the US.