The Karachi Stock Exchange.—File photo by Reuters

KARACHI: 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,” said analyst Mohammad Sohail of Topline Securities.

“The market experienced turmoil all the day. It never recovered till it suspended trading.”

Brokers said selling was witnessed across all stocks.

“Across the board selling was witnessed as investors preferred to reduce their exposure before any negative news,” said equity dealer Samar Iqbal.

Oil and Gas Development Company was down 4.01 per cent to 196.70 rupees. Foods and Fertilizer Engro Corporation fell 4.59 per cent to 122.11 rupees, while Fauji Fertilizer was down 4.3 per cent to 106.99 rupees.

“The market’s future trends depend on what the US State Department says in its next statement about the gas pipeline,” said Sohail.

Pakistani analysts said a statement from the US State Department was expected later in the evening, which could determine the future course of the market.

US State Department spokesperson Victoria Nuland has warned if the deal is finalised, it “would raise serious concerns under our Iran Sanctions Act.”

Pakistani President Asif Ali Zardari’s spokesman said the world should realise the project was being commissioned “purely to meet economic needs of the country”.

In the currency market, the rupee ended weaker at 97.85/97.90 against the dollar, compared to Friday’s close of 97.70/97.75.

Overnight rates in the money market rose to 9.40 per cent form Friday’s close of 9 per cent.

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Lawless city
22 Sep, 2023

Lawless city

A GRIM milestone has just been passed in Karachi. The recent death of a teenage robbery victim brings the number of...
Another Sharif trip
22 Sep, 2023

Another Sharif trip

THE sudden arrival of former prime minister Shehbaz Sharif in London, a mere 48 hours after he touched down in...
Delayed elections
Updated 22 Sep, 2023

Delayed elections

If ECP wishes to affirm that it is serious, it should start moving on all pending matters so that the possibility of any further delay is minimised.
What next?
Updated 21 Sep, 2023

What next?

One wonders that if administrative measures were all that were needed to arrest the rupee’s sorry slide, why were they not taken sooner?
Greater representation
21 Sep, 2023

Greater representation

PAKISTAN now stands at a significant juncture, with the names of 11.7m more women added to the voter list, ...
Lost generations
21 Sep, 2023

Lost generations

IF those who wield power in Pakistan think that the nation can progress when tens of millions of its children have...