Pakistani stock market plummets over Iran pipeline sanction fears
Pakistan’s main stock market plummeted over 400 points on Monday, the same day as the Pakistani president and his Iranian counterpart inaugurated construction work on a much delayed pipeline between the two countries, despite repeated warnings of sanctions by the United States.
The Karachi Stock Exchange (KSE) benchmark 100-index ended 441.62 points, or 2.46 per cent, lower to close at 17,522.56 points. “There was a panic-like situation in the market as investors fear United States may impose economic sanctions on Pakistan because of the gas pipeline,” analyst Mohammad Sohail of Topline Securities told media. “The market experienced turmoil all the day. It never recovered till it suspended trading.” “The market’s future trends depend on what the US State Department says in its next statement about the gas pipeline,” Sohail said. Pakistani analysts said a statement from the US State Department was expected later in the evening.