Negative sentiments drive selling at PSX, KSE-100 down nearly 1%

The Pakistan Stock Exchange (PSX) witnessed a highly volatile session on Wednesday, with the benchmark KSE-100 Index shedding nearly 1% amid sustained selling pressure.

The market opened on a positive note, pushing the benchmark index to an intra-day high of 176,255.64. However, selling pressure returned soon and the market gradually trended lower through the morning and early afternoon.

Selling intensified around mid-day, dragging the index to an intraday low of 174,104.06.

Although bargain hunting emerged during the final hours of the session, allowing the benchmark to recover some lost ground, the rebound was insufficient to offset earlier losses.

At close, the benchmark index settled at 174,429.92, down by 1,703.64 points or 0.97%.

“Selling pressure gripped the market amid heightened geopolitical tensions and persistent concerns over rising global oil prices. Investor sentiment remained fragile throughout the session, prompting risk-off positioning across key sectors,” brokerage house Topline Securities said in its post-market report.

“Market participants remained cautious as escalating Middle East tensions continued to fuel uncertainty over global energy prices and inflation, overshadowing positive cues from international equity markets. The sustained increase in crude oil prices also raised concerns about Pakistan’s external account and inflation outlook, prompting investors to reduce exposure to cyclical sectors.

“Going forward, market direction is expected to remain closely tied to developments in the Middle East, movement in international oil prices, and any domestic macroeconomic or policy-related announcements. Until greater clarity emerges, volatility is likely to persist, with investors favouring a cautious and selective approach.”

On the index contribution front, UBL, FFC, ENGROH, HUBC, and LUCK emerged as the top contributors, collectively drag approximately 776 points to the benchmark index, Topline said.

In a key development, Pakistan has asked the United States for a $10 billion exchange stabilisation facility, reported Reuters, which, if approved, could provide a lifeline for the cash-strapped South Asian economy.

The request follows Pakistan’s role in brokering talks over the Iran war, which raised its diplomatic profile and stirred hopes that it could seek economic gains from Washington and other partners.

On Tuesday, PSX closed marginally higher as optimism over a possible easing of geopolitical tensions in the Middle East encouraged selective buying, although investors remained cautious amid uncertainty surrounding US-Iran relations.

The benchmark KSE-100 Index gained 205.83 points, or 0.12%, to close at 176,133.57 points.

Internationally, stocks jumped at ​the start of trading in Asia on Wednesday as investors took cues from a rebound in US ‌markets, shrugging off climbing oil prices as Houthi rebels threatened to open a front in the widening Middle East conflict.

MSCI’s broadest index of Asia-Pacific shares outside Japan was up 1.2% as South Korea’s Kospi jumped more than 6%. Japan’s Nikkei 225 gained 1.9%, while S&P ​500 e-mini futures edged 0.1% lower.

Brent crude nudged 0.6% higher to $91.55 a barrel after two oil tankers carrying ​Saudi crude to Asia reversed course in the Red Sea on Tuesday after threats of ⁠attack from Yemen’s Iran-aligned Houthis.

Overnight, the S&P 500 was up 0.9%, snapping a three-day ​losing streak, driven by a rebound in semiconductor shares after data showed Korean semiconductor exports almost tripled during the first few weeks of July and a gauge of Taiwanese export orders for June topped estimates.

Volume on the all-share index decreased to 695.69 million from 1,003.50 million recorded in the previous close.

The value of shares declined to Rs25.40 billion from Rs35.70 billion in the previous session.

Trust Brokerage was the volume leader with 134.17 million shares, followed by Cnergyico PK with 99.43 million shares, and TPL Properties with 49.82 million shares.

Shares of 493 companies were traded on Wednesday, of which 108 registered an increase, 353 recorded a fall, and 32 remained unchanged.