Volatility at PSX amid geopolitical roller coaster, KSE-100 down nearly 700 points

A volatile trading session was observed at the Pakistan Stock Exchange (PSX), with the benchmark KSE-100 index swinging both ways before closing the week with a loss of nearly 700 points on Friday.

Continuing its momentum KSE-100 Index opened on a positive note and gained to make an intraday high of 0.66%.

“This positive opening can be attributed to news flow suggesting that US-Iran negations have entered into a final stage, which have resulted in decline in oil prices,” said Topline Securities in its post market commentary.

However, later during the day, in the second part of the trading session, investors came in to sell before the weekend, pushing the benchmark index to an intraday low of 167,480.

At close, the benchmark index settled at 167,844.24, down by 670.20 points or 0.4pc.

On Thursday, the PSX witnessed a powerful bullish session as improved investor confidence, fueled by optimism surrounding ongoing United States-Iran negotiations and a decline in international oil prices, triggered aggressive buying. The benchmark KSE-100 Index gained 3,683.02 points or 2.23% on a day-on-day basis to settle at 168,514.45 points.

Internationally, Asian stocks rose on Friday while the U.S. dollar sat near six- week ​highs and oil prices were whipsawed as investors held on to hopes of a breakthrough in ‌US-Iran peace talks, although both sides remained at odds over key issues.

The worry for investors remains the near closure of the Strait of Hormuz, a critical artery for the world’s energy supplies, which has sent oil prices soaring and rewired the global interest rate outlook because ​of inflationary concerns.

US Secretary of State Marco Rubio said there had been “some good signs” in talks to end ​the nearly three-month-old war in the Middle East, but differences remain over Tehran’s ⁠uranium stockpile and controls over the waterway.

In stock markets, MSCI’s broadest index of Asia-Pacific shares outside Japanwas 0.3% ​higher, set for a modest weekly rise. Japan’s Nikkei gained 2%.

US stocks futures rose 0.2%, and European futures gained 0.8%.

Meanwhile, the Pakistani rupee posted marginal gain of 0.01pc against the US dollar in the inter-bank market on Friday. At close, the local currency settled at 278.52, a gain of Re0.03 against the greenback.

Volume on the all-share index declined to 480.82 million from 729.40 million recorded in the previous close.

The value of shares reduced to Rs22.72 billion from Rs34.99 billion in the previous session.

Sitara Petroleum was the volume leader with 80.10 million shares, followed by Pervez Ahmed Co with 34.78 million shares, and PTCL with 26.69 million shares.

Shares of 486 companies were traded on Friday, of which 160 registered an increase, 280 recorded a fall, and 46 remained unchanged.