The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index sank by over 4,000 points during intraday trade on Thursday, after a press conference by United States President Donald Trump dampened investor hopes of a quick end to the war on Iran.
The KSE-100 index dropped by 4,073.85 points, or 2.62 per cent, to stand at 151,505.26 points as of around 12:15pm, in a change of course from the bullish momentum it had sustained over the past two days.
The market opened by plummeting to an intraday low of 150,022.43 points at 9:34am before climbing slowly upward again, hitting an intraday high of 152,052.19 an hour later at 10:34am.
In his 19-minute prime-time address from the White House, Trump reiterated that US forces would hammer Iran for another two to three weeks.
Shortly afterwards, global oil prices spiked and stocks sank.
Trump “spoke of objectives met, but not of resolution. Of continued strikes, not withdrawal. Of optional escalation, not closure”, wrote Stephen Innes at SPI Asset Management.
“The message was not one of panic, but it was unmistakably one of unfinished business. And in markets, unfinished business is oxygen for volatility.
The reaction among equity traders was no better, with Seoul — which soared more than 8pc on Wednesday — losing more than 4pc.
Tokyo, Hong Kong, Shanghai, Mumbai, Singapore, Taipei, Bangkok, Jakarta and Sydney were also well down with London, Paris and Frankfurt.
Brent crude, which had fallen back below $100 a barrel on Wednesday, surged almost 7pc to hit $108.15, while West Texas Intermediate jumped more than 6pc to as high as $106.75.
More to follow
