KSE nosedives as US tensions shoot up

KARACHI: The Karachi Stock Exchange (KSE) slumped three percent on Monday with investors agitated about increasing tensions between Pakistan and the United States in the long-running war against extremists, dealers said.

benchmark KSE-100 index shed 341.83 points, or three percent, to close at 11,265.03 with 70.61 million shares traded.

"Tension between the US and Pakistan has worried investors as they sold listed equities," analyst Mohammad Sohail of Topline Securities told AFP.

"The uncertain political and security situation is the main cause of the slump."

The White House is demanding that Pakistan "break any link" with the Haqqani network, an Al-Qaeda-linked group loyal to the Taliban and blamed for some of the most spectacular attacks in Afghanistan.

The outgoing US chief military officer, Admiral Mike Mullen, has accused Pakistan's intelligence agency of involvement in the September 13 attack on its embassy in Kabul and a September 11 attack on a NATO base in Afghanistan.

Analysts said the global sell-off on stock had also affected the local market, warning that investors might remain cautious for the rest of the week. (AFP)