Following the announcement of a two-week ceasefire between the US and Iran, Pakistan’s stock market witnessed a record rise of 14,000 points today (Wednesday, April 8). The Karachi Stock Exchange’s benchmark index, KSE-100, closed at 165,836.05—a gain of 14,162.58 points, or 9.34%. This is considered to be the biggest one-day gain in the history of the KSE-100 index. Karachi Stock Exchange had never seen such a huge rise before. After this surge, trading was halted for some time as per regulatory rules.
Pakistan market got boost from ceasefire
The conflict that has been going on for 40 days between America and Iran has been stopped for two weeks. After mediation efforts by Pakistan and China, both the countries agreed to this ceasefire.
Under the terms of the agreement, the US, Israel and Iran will cease attacks on each other; Additionally, with the help of the Iranian military, the safe passage of ships through the Strait of Hormuz will be ensured.
Earlier, the US President had issued a warning threatening to destroy Iran. He had said that if the route through the Strait of Hormuz was closed, he would wipe out the entire Iranian civilization.
The biggest fall in history was seen on March 2.
Pakistan Stock Exchange was facing ups and downs for the last few weeks. The KSE-100 index closed with marginal gains on April 7.
However, on March 2 the index fell 16,089 points—or 9.57%. This was one of the biggest declines in the history of the index. The reason for this decline was considered to be the increasing tension in the Middle East.
Further talks between America and Iran will take place in Pakistan
According to reports, this ceasefire has been implemented to open the way for diplomatic talks. The possible talks could take place in Pakistan’s capital, Islamabad. Pakistani Prime Minister Shehbaz Sharif said the ceasefire would come into effect immediately and the aim of the talks was to reach a final agreement.
Crude oil prices fell 15%, reaching $94.27 per barrel.
Following the ceasefire, crude oil prices fell by 15%. Prices fell $15 to $94.27 a barrel on Wednesday. This is the biggest fall seen in a single day in six years.
Just a day earlier, crude oil was selling at $109.27 per barrel. Before the fighting began on February 28, crude oil was at $73 a barrel. During the fight, prices rose to $120 per barrel.
Petrol and diesel rates may fall in Pakistan due to low crude oil prices
According to reports, petrol and diesel rates may come down in Pakistan due to fall in crude oil prices. On April 3, petrol and diesel prices were increased by Pakistani rupees 137 and 184 respectively. Following public protest, the government later reduced the price of petrol by Rs 80. Currently, petrol is being sold at Rs 378 per litre, while diesel is priced at Rs 520.35 per litre.
Last week, petrol prices in Pakistan crossed ₹458
Last week, petrol and diesel prices in Pakistan reached an all-time high. The price of one liter of petrol crossed the mark of PKR 458, while the price of diesel crossed PKR 520. The government had imposed a 43% hike in petrol prices and 55% hike in high-speed diesel (HSD) rates.
The decision was taken in response to the rise in global crude oil prices due to the ongoing fighting. One Pakistani rupee is equal to approximately 33 Indian paisa; This means that 100 Indian Rupees is worth approximately 300 Pakistani Rupees.