Stocks fell on Thursday as renewed nervousness over the Middle East peace path weighed on confidence after Iran’s stance raised doubts about a quick 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%, and a low of 156,251.57, down 2,061.87 points, or 1.3%, compared to the previous close of 158,313.44.
“It is the negative sentiment that Iran rejects the peace proposal, which indicates continued hostility,” said AAH Soomro, an independent economic and investment analyst.
“So far it is a market driven purely by sentiment. The economy is nervous but 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 virtual closure of the Strait of Hormuz, through which around 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 Tokyo, Hong Kong, Shanghai, Seoul, Manila and Jakarta lower, while Singapore, Wellington and Taipei rose and Sydney held steady.
Markets had found support since Monday evening, after US President Donald Trump walked back a threat to destroy Iran’s energy infrastructure and said the two sides were in peace talks. Washington has laid out a 15-point plan to end the war, while Iranian state television reported that officials had proposed five conditions for ending hostilities.
Trump threatened on Wednesday to “unleash hell” if Iran did not reach a deal, although he also said Iran was participating in peace talks, while Foreign Minister Abbas Araghchi said Iran had no intention of negotiating.
In the previous session on Wednesday, the KSE-100 rose 4,347.08 points, or 2.82%, to close at 158,313.44 from 153,966.36. The index hit an intraday high of 158,586.09 and a low of 155,199.71.
