Volatility at PSX, KSE-100 settles marginally higher

The Pakistan Stock Exchange (PSX) saw a volatile trading session on Monday, with the benchmark KSE-100 Index swinging sharply between gains and losses before ending the day marginally higher.

After opening on a weak note, the benchmark fell below 174,000 during early trade as selling pressure dominated, dropping to an intra-day low of 173,636.45.

However, buying interest gradually returned, enabling the market to recover through the second half of the session. The recovery gained momentum after mid-day, with the index climbing above 175,000 and briefly crossing 176,000 around early afternoon, hitting the intra-day high of 176,129.35 before some profit-taking trimmed gains later in the session.

At close, the benchmark index settled at 175,927.73, up 124.95 points, or 0.07%.

“The market remained highly volatile throughout the session, reflecting cautious investor sentiment amid lingering geopolitical tensions and uncertainty in global energy markets,” brokerage house Topline Securities said in its post-market report.

“On the sectoral front, banking and refinery stocks led the recovery, while selective buying in other index-heavy names provided additional support to the benchmark. Nevertheless, overall market sentiment remained cautious as investors continued to monitor geopolitical developments and their potential implications for oil prices and foreign investment flows.”

On the index contribution front, UBL, ATRL, CNERGY, ENGROH, and HUBC emerged as the top contributors, collectively adding approximately 338 points to the benchmark index, Topline said.

During the previous week, the PSX remained under heavy selling pressure, as escalating regional geopolitical tensions and a sharp rise in international oil prices undermined investor confidence, extending the market’s losing streak for a second consecutive week.

According to the weekly market review, the KSE-100 Index declined by 3.5% on a week-on-week basis, shedding 6,438.97 points to close at 175,802.80 points.

Globally, Asian share markets slipped on Monday as the escalating conflict in the Gulf lifted oil prices and ​fanned fears of inflation, while a packed week of major tech earnings will further test investor faith in the AI trade.

Brent crude ‌climbed above $90 a barrel for the first time in more than a month as the US military started a ninth straight day of attacks against Iran, which in turn struck targets across the region.

Just a handful of ships transited the Strait of Hormuz on Sunday and one was reported to be on fire.

Brent duly added ⁠2.6% to $90.40 a barrel, while U.S. crude rose 2.3% to $84.39.

The jump in fuel costs has revived worries about inflation even as U.S. consumer price data surprised on ​the downside last week, leading futures markets to price in 29 basis points of Federal Reserve rate hikes by year-end.

Futures imply a 60% chance of a rate rise as early as September, pushing yields on 30-year Treasuries back above the psychological 5.0% barrier. This is a level ​that tends to attract funds away from equities and toward fixed income, while lifting the valuation bar for future corporate earnings.

The shift has come just as investors ​question sky-high valuations for chip and AI stocks, which have seen the Philadelphia Semiconductor Index shed 10% last week to leave it 20% down from June’s record high.

Japan’s Nikkei was closed for a holiday, having shed 6.4% last week in a tech-led rout. MSCI’s broadest index of Asia-Pacific shares outside Japan dipped 0.3%, while Chinese ​blue chips rose 1.4%.

South Korea’s chip-heavy market lost a further 4.2%, after diving almost 9% last week in wild trade ​as retail investors were ⁠squeezed out of leveraged positions.

Meanwhile, the Pakistani rupee extended its gains against the US dollar on Monday. The local unit closed the day at 277.95, a gain of Re0.01 against the greenback.

Volume on the all-share index increased to 675.92 million from 621.02 million recorded in the previous close.

The value of shares rose to Rs30.27 billion from Rs29.88 billion in the previous session.

Cnergyico PK was the volume leader with 166.06 million shares, followed by Pak Refinery with 49.16 million shares, and TPL Properties with 38.44 million shares.

Shares of 492 companies were traded on Monday, of which 165 registered an increase, 277 recorded a fall, and 50 remained unchanged.