Pakistan’s stocks slump as US-Iran peace talks collapse

Massive selling pressure was observed at the Pakistan Stock Exchange (PSX) after the US and Iran failed to reach an agreement during their crucial talks in Islamabad. The benchmark KSE-100 Index shed nearly 5,200 points during the opening hours of trading on Monday. At 10:04am, the benchmark index was hovering at 162,057.43, down by 5,133.94 points or 3.07%. “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.” Selling was observed in key sectors, including automobiles, cement, commercial banks, oil and gas exploration companies, OMCs, power generation, and refineries. Index-heavy stocks, including ARL, HUBCO, MARI, OGDC, POL, PPL, PSO, SSGC, SNGPL and WAFI, traded in the red.