KSE-100 Surges 10,000 Points in 2 Days on US-Iran Talks
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- KSE-100 surged 10,000 points in two days after Trump said US-Iran peace talks could resume in Pakistan within two days, with no concrete agreement yet reached
- Trump said Iran "would like to make a deal very badly" while insisting Iran will not be allowed to acquire nuclear weapons, which he called the key sticking point
- Oil prices fell for a second straight day Wednesday on hopes renewed talks would ease Middle East supply constraints, after the US imposed a weekend blockade on Iranian ports
- Christopher Wood of Jefferies calls Pakistan a "high-beta opportunity linked to IMF support," noting the MSCI Pakistan Index is up 84% in dollars since the September 2024 IMF programme
- The previous round of talks, brokered by PM Shehbaz Sharif and army chief Asim Munir, failed to yield a peace agreement; the KSE-100 has since swung from a 12,000-point intraday surge to a 6,000-point Monday plunge, with Tuesday's partial recovery followed by the latest 10,000-point two-day rally
Why it matters: Pakistan's KSE-100 is now a direct proxy for US-Iran diplomacy — swinging a 12,000-point intraday gain, a 6,000-point crash, and a 10,000-point two-day rally within a single week, per the source. Jefferies' Christopher Wood frames this as a high-beta IMF-linked trade, noting MSCI Pakistan has outperformed MSCI India by 124 percentage points in dollars since the September 2024 programme, rewarding investors who timed the macro-stabilisation phase.
