Massive selling sinks Pakistan Stock Exchange by 6,600 points

Massive selling pressure was observed at the Pakistan Stock Exchange (PSX) on Monday after the US and Iran failed to reach an agreement during their crucial talks in Islamabad, reported 24NewsHD TV channel.

The benchmark KSE-100 Index plummeted by 5,021 points during the opening minutes of trading on Monday. At 10:05am, the index was hovering at 162,170.21, down by 5,021.24 points, or 3.10%.

However at the close of business, the selling was all over and the index plunged by 6,600.04 points or minus 4.11 percent to 160,591.33 points.

Selling was observed in key sectors, including automobile, cement, commercial banks, oil and gas exploration companies, OMCs, power generation, and refinery. Index-heavy stocks, including ARL, HUBCO, MARI, OGDC, POL, PPL, PSO, SSGC, SNGPL, and WAFI, traded in the red.     

Globally, oil and the dollar jumped on Monday as the failure ‌of US-Iran talks to yield an agreement left a fragile ceasefire hanging in the balance and no end to a choke on Middle East energy exports.

S&P 500 futures dropped 1% in early trade. Benchmark Brent crude futures surged 8% to $103 a barrel. The euro fell ​about 0.5% to $1.1672.

Moves in Asian stock markets were broadly lower but relatively modest, with investors reluctant to make big bets as they waited for signs of a negotiated end to a six-week conflict that has already pushed oil prices more than 30% higher.

Japan’s Nikkei fell 0.4%, South Korea’s ​KOSPI slumped 1.4%, and the S&P/ASX 200 slipped 0.6%.

Marathon talks in Islamabad ended in stalemate, and with the US ​announcing a blockade of Iranian ports, seemingly aimed at stopping Iran from exporting oil or levying tolls to transit the narrow Strait of Hormuz, the choke point of the Persian Gulf.

The Wall Street Journal reported Trump and his advisers were weighing limited strikes on Iran, though ​there were no immediate reports of attacks in early Asian trading to shatter a fragile U.S.-Iran ceasefire that has ​largely held since last week.

Reporter: Kawish Memon