Volatility at bourse, KSE-100 down 1.5%

The Pakistan Stock Exchange (PSX) saw broad-based sell-off, with the benchmark KSE-100 Index shedding over 1.5% amid sustained pressure throughout the trading session on Thursday.

After opening on a relatively positive note and touching an intra-day high of 175,237.59, the index quickly lost momentum as selling intensified across key sectors.

The benchmark gradually trended lower through the day, slipping below 174,000 . Selling pressure accelerated during the final hours, dragging the index to an intra-day low of 171,655.09.

At close, the benchmark index settled at 171,739.44, down 2,690.48 points or 1.54%.

“The bears remained firmly in control of the local bourse as intensifying geopolitical tensions between the US and Iran continued to dampen investor sentiment. The heightened uncertainty fueled a sharp rally in global energy markets, with WTI crude oil surging to around US$90 per barrel, raising concerns over inflationary pressures and the broader economic outlook,” brokerage house Topline Securities said.

On the index contribution front, UBL, FFC, ENGROH, LUCK, and HUBC emerged as the top negative contributors, collectively subtracting approximately 1101 points to the benchmark index, Topline said.

In a key development, credit ratings agency S&P Global raised Pakistan’s long-term sovereign credit rating to “B” from “B-” on Wednesday, citing stronger institutional stability and effective implementation of reforms under an IMF program.

“The stable outlook reflects our view of Pakistan’s improved political and institutional settings. Entrenched economic reforms will bring about a sustained period of steady growth and fiscal consolidation,” said S&P.

On Wednesday, the PSX remained under heavy selling pressure as escalating geopolitical tensions in the Middle East and persistent concerns over rising international crude oil prices triggered widespread risk-off sentiment and prompted investors to reduce exposure to blue-chip and cyclical stocks.

The benchmark KSE-100 Index settled at 174,429.93 points, losing 1,703.64 points or 0.97%.

Internationally, Asian stocks rose on Thursday after US technology firms outlined significant capital spending plans that are likely to benefit chipmakers in ​the region, while the escalating war in the Middle East sent oil prices to six-week highs.

Rising oil prices have also renewed inflationary concerns, pushing ‌short-term US Treasury yields to 17-week highs as traders wager the Federal Reserve may need to raise interest rates sooner rather than later.

Brent crude futures rose 2% to $96 per barrel in early trading after the US launched a new round of strikes on Iran and Yemen’s Houthis targeted oil tankers in the Red Sea, widening the scope of a conflict that has cast a ​shadow on the global markets.

Earnings from Alphabet and Tesla showed no slowdown in the vast spending on ​AI infrastructure. The search giant raised its capital expenditure plans for the year and now expects to spend between $195 billion and $205 billion.

A lot of the spending is expected to boost Asian chipmakers. That took South Korea’s KOSPI up more than 3%, led by SK Hynix and Samsung Electronics. Japan’s Nikkei was up 1%.

MSCI’s broadest index of Asia-Pacific shares outside Japan ​gained about 1% in early trading, set for a 3% rise for the week, snapping a two-week losing streak.

Meanwhile, the Pakistani rupee extended its marginal gains against the US dollar on Thursday. The local unit closed the day at 277.90, a gain of Re0.01 against the greenback.

Volume on the all-share index declined to 525.12 million from 695.67 million recorded in the previous close.

The value of shares declined to Rs23.43 billion from Rs25.40 billion in the previous session.

Cnergyico PK was the volume leader with 60.71 million shares, followed by Pak Refinery with 28.41 million shares, and TPL Properties with 23.35 million shares.

Shares of 493 companies were traded on Thursday, of which 91 registered an increase, 372 recorded a fall, and 30 remained unchanged.