KSE-100 sheds nearly 4%

KARACHI: 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, with the benchmark KSE-100 Index closing down 6,600 points or 3.95%.

The bears maintained their grip for most part of the day, taking the index to an intra-day low of 160,158.92.

At close, the benchmark index settled at 160,591.33, down by 6,600.04 points or 3.95%. “The market landscape has shifted drastically this morning,” said Behtari Capital on Monday.

“We are currently witnessing a flight to safety. In this high-volatility environment, cash is king. Until there is more clarity on the actual impact of the US blockade tonight, avoid catching a falling knife.”

Topline Securities said the downturn was primarily driven by uncertainty surrounding the lack of progress in the US–Iran talks held in Islamabad, coupled with growing concerns over a potential blockade of the Strait of Hormuz. “These developments pushed global oil prices higher, triggering broad-based panic selling across the market.”

Selling pressure was particularly concentrated in index-heavy stocks, with FFC, UBL, ENGROH, LUCK, and MEBL emerging as major laggards, collectively pulling the benchmark down by 2,414 points, Topline said.

US Vice President JD Vance said on Sunday that his negotiating team was leaving Pakistan after not reaching a deal with Iran after 21 hours of negotiations. Vance cited shortcomings in the talks and said Iran had chosen not to accept American terms, including not to build nuclear weapons. Staff Report