Selling continues at PSX, KSE-100 sheds nearly 800 points

Volatility continued at the Pakistan Stock Exchange (PSX) as the benchmark KSE-100 Index remained under selling pressure through most of the trading session, shedding nearly 800 points on Tuesday.

The market opened on a relatively firm footing, with the index briefly climbing to the intra-day high of 179,405.55 during early trade.

However, profit-taking emerged soon afterwards, triggering a gradual decline.

The selling pressure intensified in the afternoon session, dragging the index below the 178,000-point mark and pushing it to an intra-day low of 177,674.37 points. Although some value-hunting helped the market recover marginally, the benchmark remained firmly in the red by the end.

At close, the benchmark index settled at 177,692.92, down by 778.94 points or 0.44%.

“The local bourse witnessed a weak and volatile session as rollover-related pressure and fiscal year-end considerations weighed on investor sentiment,” brokerage house Topline Securities said in its post-market report.

“Overall participation remained cautious, with investors largely on the sidelines amid portfolio repositioning and profit-taking ahead of the fiscal year-end, resulting in a lackluster close across the broader market.”

On the index contribution front, index heavyweights UBL, BAHL, ENGROH, FFC, and BAFL emerged as the major laggards, collectively dragging the benchmark by 595 points. On the flipside, OGDC, MLCF, PPL, SNGP, and COLG provided some support, collectively contributing 217 points to the index, Topline said.

On Monday, the PSX ended lower as investors resorted to profit-taking after the market’s strong rally in recent sessions. The benchmark KSE-100 Index declined by 450.89 points, or 0.25%, to close at 178,471.87 points.

Internationally, Asian stocks mostly eased, and ​oil prices regained strength early on Tuesday after the US waived sanctions on Iran, while traders grappled ‌with rising expectations that the Federal Reserve may take more aggressive action to tackle inflation later this year.

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.5%, while S&P 500 e-mini futures slipped 0.2%.

The Nikkei 225 was off ​0.6%, retracing some losses after data showed Japan’s manufacturing sector sustained robust growth in June, with new orders ​surging to their fastest pace in more than four years.

South Korean shares fluctuated between gains and ⁠losses and were last 2% lower, while Taiwanese stocks opened 0.9% higher, setting a new high.

Stocks on Wall Street moved lower overnight, with the S&P 500 down 0.4%, and the Nasdaq Composite slipped 1.3%, dragged by ​declines in megacap technology stocks including Alphabet and SpaceX.

Traders ⁠are grappling with expectations of an accelerated schedule of rate hikes by a more aggressive Federal Reserve under the leadership of new Chair Kevin Warsh.

Fed funds futures are pricing an implied 54% probability of at least two 25-basis-point hikes before the ⁠end of ​the year, compared with a 15.2% chance a week ago, according ​to the CME Group’s FedWatch tool.

Meanwhile, the Pakistani rupee posted marginal gain against the US dollar in the inter-bank market on Tuesday. At close, the local currency settled at 278.21, a gain of Re0.01 against the greenback.

Volume on the all-share index decreased to 765.14 million from 807.48 million recorded in the previous close.

The value of shares decreased to Rs35.44 billion from Rs36.17 billion in the previous session.

K-Electric Ltd was the volume leader with 83.43 million shares, followed by WorldCall Telecom with 71.24 million shares, and Sui South Gas with 32.35 million shares.

Shares of 493 companies were traded on Tuesday, of which 146 registered an increase, 308 recorded a fall, and 39 remained unchanged.