Selling returns at PSX, KSE-100 down 500 points
- Benchmark index was hovering at 180,928.55
The Pakistan Stock Exchange's KSE-100 Index gained over 400 points, extending last week's recovery driven by eased geopolitical tensions and positive global market sentiment.
- Key sectors driving PSX gains.
- Geopolitical factors influencing investor sentiment.
- Global market trends and US inflation outlook.
After a positive start, selling returned at the Pakistan Stock Exchange (PSX), with the benchmark KSE-100 Index shedding over 500 points during the trading session on Monday.
At 12:40pm, the benchmark index was hovering at 180,928.55, down by 501.47 points or 0.28%.
Selling was observed in key sectors, including automobile assemblers, cement, commercial banks, oil and gas exploration companies, and power generation. Index-heavy stocks, including HUBCO, MARI, HBL, MCB, and NBP, traded in the red.
During the previous week, the PSX staged a strong recovery as progress in diplomatic talks between Iran and Oman over shipping through the Strait of Hormuz, along with expectations of a broader US-Iran agreement, eased geopolitical concerns and improved investor sentiment.
The benchmark KSE-100 Index gained 5,335.89 points, or 3% week-on-week, to close at 181,430.02 points.
Asian share markets tracked Wall Street higher on Monday after a soft US jobs report pared the risk of a near-term rise in borrowing costs, though a lack of progress in Gulf peace talks saw oil prices creep higher.
Iran said on Sunday that a deal with Oman defining new shipping lanes in the Strait of Hormuz was in its final stages but reiterated that the waterway would only reopen once the United States met other conditions.
Brent crude added 0.9% to $84.32 a barrel as shipping through the vital waterway remained at a trickle, while US crude rose 0.7% to $78.74 a barrel.
The latest revival in fuel costs raises the stakes for the US July consumer price report due on Wednesday, where analysts look for a rise of 0.1% in the headline and 0.2% for the core.
Any upside surprise could rekindle speculation of a hike from the Federal Reserve next month.
The futures market has scaled back the chance of a September move to around 44%, from 67% a week ago.
The pullback in rate risk helped Treasuries rally on Friday and saw Wall Street close at record highs. Japan’s Nikkei followed that lead and rose 0.6% on Monday, while South Korea added 0.5%.
MSCI’s broadest index of Asia-Pacific shares outside Japan edged up 0.3%.
This is an intraday update
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