Pakistan’s stock markets crashed with its benchmark index KSE 100 plunging nearly 6,000 points losing 3.5% to hit the day’s low at 1,61,638 on Monday.
The decline came after the ceasefire talks between Iran and US brokered by Pakistan's Prime Minister Shehbaz Sharif and army chief Asim Munir, failed to culminate into a peace deal. The KSE-100 Index dropped 4,567.31 points (-2.73%) to 162,624.06 within two hours of trading starting on the floor. Notably, on Wednesday last week, the index surged sharply jumping over 12,000 points to record its biggest intraday gain in absolute terms. The stock market reacted after the news of a temporary ceasefire between the US and Iran eased geopolitical tensions and boosted investor confidence across the region. Later, despite the intra-day volatility, the index showed signs of recovery as the bourse trimmed some losses to 4,450.97 points (-2.66%), with the index improving to 162,740.40 showing some stabilisation on the floor, PTI reported. On Monday, the Islamabad talks failed, and US President Donald Trump announced US blockade of the Strait of Hormuz. "Effective immediately, the United States Navy, the Finest in the World, will begin the process of BLOCKADING any and all Ships trying to enter, or leave, the Strait of Hormuz," Trump said hours after US Vice President JD Vance announced that no agreement could be reached during talks with Iran. US Central Command said the blockade would be "enforced impartially against vessels of all nations" entering or departing Iranian ports and coastal areas, including all Iranian ports on the Persian Gulf and Gulf of Oman. The CENTCOM said it would still allow ships travelling between non-Iranian ports to transit the Strait of Hormuz. The Strait of Hormuz has been effectively controlled by Iran since the beginning of the war on February 28.
