Selling grips PSX, KSE-100 closes 1,600 points lower
- Benchmark index settles at 176,042.98
The Pakistan Stock Exchange experienced significant selling pressure and a 1,300-point drop due to renewed Middle East tensions, while Asian markets rebounded after AI-driven selloffs.
- Impact of renewed Middle East attacks on the PSX.
- Selling pressure across key sectors at the Pakistan Stock Exchange.
- Asian stock markets rebounding after AI anxiety-driven selloffs.
Stocks remained under pressure throughout Wednesday’s trading session at the Pakistan Stock Exchange (PSX) as fresh attacks in the Middle East shattered the relative calm of recent days in the US-Iran war, with the benchmark KSE-100 Index shedding nearly 1,600 points.
Throughout the day, persistent selling outweighed intermittent bargain hunting.
After an early slump and a midday recovery, renewed selling in the final hour dragged the benchmark back towards its intraday low of 175,631.74, underscoring cautious investor sentiment despite periodic buying interest.
At close, the benchmark index settled at 176,042.98, down by 1,580.90 points or 0.89%.
On Tuesday, PSX closed lower as investors resorted to profit-taking after Monday’s sharp rally, erasing early gains despite strong buying interest in refinery stocks following reports of policy support for the sector.
The benchmark KSE-100 Index declined by 638.45 points, or 0.36%, to settle at 177,623.88 points.
Internationally, Asian stocks rebounded on Wednesday after a brutal selloff a day earlier as anxiety about valuations, rising competition and AI spending rocked markets ahead of crucial earnings from big tech firms and a Federal Reserve policy decision.
Asian chipmakers have been at the epicentre of this year’s AI-driven rally and, more recently, investor concerns about its staying power, sparking sharp market swings. But strong earnings from SK Hynix helped calm some of those fears.
South Korea’s KOSPI gained over 1% in early trading after sinking more than 10% to a three-month low on Tuesday. Shares of SK Hynix rose 2% after the chipmaker posted a more than sixfold increase in quarterly operating profit but missed lofty expectations.
MSCI’s broadest index of Asia-Pacific shares outside Japan was 0.8% higher after shedding 3.6% on Tuesday and remains on course for a monthly drop of 6.6%. Japan’s Nikkei gained 1% but is bracing for a 10% drop in July.
Earnings from “Magnificent Seven” members Microsoft and Meta later in the day will be a key test of the AI trade, particularly after Alphabet and Tesla spooked investors last week with negative cash flow reports.
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