Shares on the stock market fell on Thursday as renewed nervousness over the issue of Middle East peace weighed on sentiment, after Iran’s stance raised doubts about a rapid de-escalation.
The Pakistan Stock Exchange’s benchmark KSE-100 index traded between a high of 157,591.23, down 722.21 points, or 0.47 percent, and a low of 156,251.57, down 2,061.87 points, or 1.3 percent, from the previous close of 158,313.44.
“It is the negative sentiment that the peace proposal is being rejected by Iran, a sign of continued hostility,” said AAH Soomro, an independent investment and economic analyst.
“So far it’s been a purely sentiment-driven market. The economy is nervous but it’s moving forward,” he added.
Oil prices stabilized this week as investors still held out hope for a deal, with Brent just above $100 and WTI around $90, although the near-closure of the Strait of Hormuz, through which about 20% of the world’s oil and gas passes, continued to cast a shadow over markets.
Asian stocks were mixed after a two-day rally, with declines in Tokyo, Hong Kong, Shanghai, Seoul, Manila and Jakarta, while Singapore, Wellington and Taipei rose and Sydney was flat.
Markets have regained support since Monday evening after US President Donald Trump backed away from threatening to destroy Iran’s energy infrastructure and said the two sides were in peace talks. Washington outlined a 15-point plan to end the war, while Iranian state television reported that officials had set five conditions for ending hostilities.
Trump on Wednesday threatened to “unleash hell” if Iran failed to reach a deal, while asserting that Iran was taking part in peace talks, while Foreign Minister Abbas Araghchi said Iran had no intention of negotiating.
In the previous session on Wednesday, the KSE-100 jumped 4,347.08 points, or 2.82 percent, to close at 158,313.44 from 153,966.36. The index touched an intraday high of 158,586.09 and a low of 155,199.71.
