Pakistan stocks drop over 1,900 points amid Israel-Iran tensions
KARACHI: The Pakistan Stock Exchange (PSX) plunged more than 1,900 points on Friday, as investor sentiment soured following Israel's strikes on Iran, triggering fears of wider regional escalation.
The benchmark KSE-100 index fell 1,949.56 points, or 1.57 percent, closing at 122,143.56, down from the previous close of 124,093.12.
Shares traded largely in the red, mirroring losses across regional and global markets after the Israeli attacks shook investor confidence, according to a market review by Pakistani brokerage Topline Securities.
'Geopolitical tensions after Israel's attack in Iran weighed down on world equities, including the KSE100,' Raza Jafri, Head of Intermarket Securities, told Arab News. 'In particular, if a geopolitical risk premium gets added to international oil prices on a prolonged basis, it could negatively affect the outlook for the current account deficit and inflation, given more than 25 percent of Pakistan's import bill comprises of petroleum products.'
He noted that Pakistan was now 'much more disciplined' economically, having avoided fuel subsidies and refrained from using foreign exchange reserves to support the currency. This, he said, would help the country better withstand a potential oil price shock than in the past.
Ahsan Mehanti, Chief Executive of Arif Habib Commodities Ltd, said stocks declined across the board in response to the strikes.
'Slump in global equities on geopolitical risks and weakening rupee played catalyst role in panic selling at PSX,' he said.
Israel launched strikes on Iran earlier on Friday, claiming Tehran was 'very close' to developing a nuclear weapon. The attacks reportedly targeted nuclear facilities, scientists, and senior military commanders.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Arab News
an hour ago
- Arab News
Israel-Tehran conflict cripples border trade between Pakistan and Iran
QUETTA: The ongoing conflict between Israel and Iran has crippled border trade between Pakistan and Iran, transporters and traders said this week, with markets closed and dozens of trucks stranded on the Pakistani side of the border. Pakistan shares a 959-kilometer border with Iran in its southwest and the trade volume between the two countries stood at $2.8 billion in the last fiscal year that ended in June 2024, according to Pakistani state media. In Feb., the two neighbors signed an agreement to take the bilateral trade volume to $10 billion, but tensions between Iran and Israel prompted Pakistan to suspend operations at the Taftan border crossing in Balochistan on June 15, mirroring the Iranian side's restrictions following Israeli airstrikes. 'We've been stuck here in Taftan for four to five days, with six to seven vehicles,' Syed Khalil Ahmed, a local transporter, told Reuters on Friday. 'We're waiting for it to reopen so we can load our goods. The market is closed, and there's a shortage of food and drinks.' Israel began attacking Iran on June 13, saying its longtime enemy was on the verge of developing nuclear weapons. Iran, which says its nuclear program is only for peaceful purposes, retaliated with missile and drone strikes on Israel. The Taftan border, a vital trade artery which typically handles daily exchanges in fuel, food and household goods, is now left paralyzed. Local traders said 90 percent of goods in Taftan typically come from Iran. 'With the border closed, no goods are arriving [from Iran] ... Local traders with Pakistani passports can't enter Iran, and Iranian passport holders can only reach the border and return,' said Hajji Shaukat Ali, an importer of liquefied petroleum gas (LPG). 'This is hurting local businesses and traders. For us, as major LPG gas traders, some of our vehicles are stuck en route and won't be able to reach us now.' Ahmed said they were losing approximately Rs20,000 ($70) per truck daily while facing critical shortages of essential supplies. 'We're managing with what we have, but it's tough,' he added.
Al Arabiya
an hour ago
- Al Arabiya
South Korea's chief trade negotiator plans US visit June 22-27
South Korea's trade minister Yeo Han-koo will visit the United States from June 22 to 27, the trade ministry said on Saturday. The visit will include discussions with US Trade Representative Jamieson Greer and the third round of bilateral technical discussions, a ministry official told Reuters. Further details about the meetings were not disclosed. 'Since a South Korea-US summit has yet to take place and key ministers have not been appointed under the new administration, negotiations are likely to focus on areas that the trade ministry can manage - excluding major issues such as defense cost - sharing and exchange rates,' Heo Yoon, an economics professor at Sogang University, said. 'Given these circumstances, reaching a comprehensive agreement on key negotiation frameworks and agendas is expected to be challenging.' South Korea, which is currently facing a 10 percent blanket tariff and a 25 percent country-specific duty temporarily paused for 90 days, agreed with the US during initial trade negotiations in late April to craft a trade deal reducing tariffs by July 8. Asia's fourth-largest economy unexpectedly contracted in the first quarter amid US President Donald Trump's sweeping tariffs and domestic political unrest following former President Yoon Suk Yeol's martial law decree in December.
Al Arabiya
2 hours ago
- Al Arabiya
Malaysia keeps anti-dumping duties on some Chinese, Japanese iron, steel
Malaysia said on Saturday it would maintain anti-dumping duties on imports of Chinese and Japanese cold rolled coils of iron and non-alloy steel more than 1,300 mm wide. But the trade ministry said in a statement it would terminate anti-dumping duties on imports from South Korea and Vietnam on Monday. The duties, to be in effect for five years, will exclude imports from all four countries of tin mill black plate and merchandise imported for automotive purposes, and finwall for transformer use. Three Chinese producers face duty rates of 4.82 percent, 4.76 percent and 8.74 percent while other Chinese producers and exporters face 26.38 percent duties. Japanese exporters will be subjected to a 26.39 percent duty.
