The Pakistan Stock Exchange has been recovering on January 9, (Thursday) after two days of suffering equity losses due to tensions between US and Iran. The benchmark KSE-100, had lost over 1,000 points since January 6 after the Iranian general Soulemani was killed.
Iran launched as many as 20 missiles on American Base in Iran Today, however Mr. Trump insisted that there would be no retaliation and all was well.
“Since Trump gave the impression that he did not want to engage in war and that they’d rather diplomacy be the course, the panic has somewhat vanished,” said senior equity analyst Raza Jafri. “People are returning to the equity market and it is safe to say the market will bounce back.”
The KSE-100 was at 42, 545. 67 points at 2:47 P.M. on January 9. Due to regional conflicts, it had closed at 41,357 on January 7.
Investors rapidly turned to safer options such as solid commodities. Gold is always the go-to option for the market and this was reflected right after the assassination of the top Irani military commander, as the price of gold shot up across the world. However, the prices of Brent crude oil and gold, two indices that drive markets all over the world, have dropped to previous levels and global panic has dissipated.
Another investment expert Adnan Sami Sheikh said that the volatility was temporary. “It was only because of the tensions in the region due to the US-Iran face off but as soon as the risk seemed to be averted, stocks attracted investments again,” he said, adding that the KSE-100 index should not only maintain the 42,000 level, but “may in fact cross 43,000 by the weekend.”
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03 April, 2020