Selling continues as KSE-100 Index further loses 950 points

A volatile trading session was observed at the Pakistan Stock Exchange (PSX), with the benchmark KSE-100 Index shedding over 950 points on Thursday.

The market kicked off trading on a positive note, with the benchmark KSE-100 Index hitting an intra-day high of 168,528.87. However, the momentum remained short-lived as selling pressure engulfed the trading.

The benchmark index maintained a downward trajectory as selling accelerated, dropping to an intra-day low of 166,398.90.

At close, the benchmark index settled at 166,498.83, down by 952.30 points or 0.57%.

“The local bourse witnessed another volatile trading session today, with the benchmark index swinging sharply throughout the day amid cautious investor sentiment,” brokerage house Topline Securities said in its post-market report.

“Market participants remained wary due to the lack of tangible progress in ongoing negotiations and persistent uncertainty surrounding developments between the United States and Iran. Adding to the pressure, elevated international oil prices continued to dampen investor confidence, keeping overall market sentiment fragile throughout the session,” it added.

Index-heavy stocks, including United Bank Limited, Systems Limited, Bank Alfalah Limited, Fauji Fertilizer Company Limited, and Pakistan Petroleum Limited, remained under selling pressure, collectively dragging the index lower by 580 points, Topline said.

On Wednesday, PSX remained bearish as investors adopted a cautious stance amid the absence of tangible progress in ongoing diplomatic negotiations and lingering uncertainty over developments between the United States and Iran, while elevated oil prices further dampened market sentiment and triggered selling in key index-heavy stocks. The KSE-100 Index closed at 167,451.14 points, registering a decline of 1,465.09 points or 0.87%.

Globally, stocks rose on Thursday, powered by AI fervour that pushed ​South Korea’s SK Hynix to the brink of joining the trillion-dollar club, while the spotlight was firmly on a high-stakes summit between ‌US President Donald Trump and China’s Xi Jinping.

Trump received a grand welcome at Beijing’s Great Hall of the People on Thursday as he opened talks with President Xi, expected to focus on their fragile trade truce and flashpoints such as the Iran war and arms sales to Taiwan.

China’s blue-chip stocks eased 1% after hitting ⁠their highest level since late 2021 at the start of the session, while the yuan rose to a three-year high against the dollar as traders ​watched the headlines from the Trump-Xi meeting.

MSCI’s broadest index of Asia-Pacific shares outside Japan was 0.3%, hovering near the record-high hit last week.

Japan’s Nikkei ​was perched at a new all-time peak with data showing AI-linked demand partly helped lift earnings for Japanese firms. Seoul’s KOSPI gave up its early gains to trade flat on the day.

Analysts, though, caution ​that the elevated oil prices and the impasse in negotiations to end the war in the Middle East could bring inflationary worries back into view.

Meanwhile, the Pakistani rupee posted marginal gain, appreciating 0.01%, against the US dollar in inter-bank market on Thursday. At close, the local currency settled at 278.62, a gain of Rs0.03 against the greenback.

Volume on the all-share index increased to 706.02 million from 684.90 million recorded in the previous close.

The value of shares declined to Rs19.92 billion from Rs21.74 billion in the previous session.

Bunnys Limited was the volume leader with 115.35 million shares, followed by Trust Brokerage with 62.76 million shares, and Treet Battery Ltd with 56.83 million shares.

Shares of 484 companies were traded on Thursday, of which 155 registered an increase, 293 recorded a fall, and 36 remained unchanged.