Equities fell on Monday as the failure of US-Iran talks to secure a lasting deal and fresh Hormuz shipping risks reignited oil prices and weakened risk appetite.
"Investors are naturally disappointed by the talks' inability to secure a long-term ceasefire. US statements on blocking the Strait of Hormuz have further increased upside risk in oil, with international prices rising by $6 to $7 a barrel back into the $100-plus range," said AAH Soomro, an independent investment and economic analyst.
"Volatility is expected to continue this week until further progress is seen," he added.
The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index settled at 160,591.33 points, down 6,600.04 points, or 3.95%, from the previous close of 167,191.37.
The index traded between a high of 163,612.11, down 3,579.26 points or 2.14%, and a low of 160,158.92, down 7,032.45 points or 4.21%.
Oil rose back above $100 a barrel after peace talks between the United States and Iran failed to produce a breakthrough and Washington moved to tighten pressure on Iran’s maritime trade.
President Donald Trump said on Sunday the US Navy would begin blockading maritime traffic entering and exiting Iranian ports, raising fresh concern over the Strait of Hormuz and the durability of the Pakistan-mediated ceasefire.
The US Central Command said US forces would begin implementing the blockade of all maritime traffic entering and exiting Iranian ports from 10am ET (7pm, Pakistan standard time) on Monday.
In the previous session, the KSE-100 rose 1,673.87 points, or 1.01%, to close at 167,191.37 from 165,517.51, trading between 168,290.29 and 166,221.33. The KSE-30 advanced 420.31 points, or 0.84%, to 50,589.37.
