Volatility at bourse, KSE-100 down 1,000 points
- Benchmark index was hovering at 174,993.83
The Pakistan Stock Exchange experienced volatile trading, with the KSE-100 Index shedding points amid broad-based selling, following global market uncertainty, Middle East tensions, and rising oil prices.
- KSE-100 Index performance and affected sectors.
- Impact of Middle East tensions and rising crude oil prices.
- Global market volatility and Federal Reserve interest rate decisions.
The Pakistan Stock Exchange (PSX) witnessed volatile trading on Thursday, with the benchmark KSE-100 Index shedding over 1,000 points during the trading session.
At 11:35am, the benchmark index was hovering at 174,993.83, down by 1,049.15 points or 0.60%.
Selling was observed in key sectors, including automobile assemblers, cement, fertiliser, oil and gas exploration companies, OMCs, power generation and refinery. Index-heavy stocks, including ARL, PRL, HUBCO, OGDC, POL, PPL, PSO, MCB, NBP and UBL, traded in the red.
On Wednesday, PSX remained under pressure for a second consecutive day as escalating geopolitical tensions in the Middle East and a sharp rise in international crude oil prices dampened investor sentiment, triggering broad-based selling across key sectors.
The benchmark KSE-100 Index shed 1,580.90 points, or 0.89%, to settle at 176,042.99 points.
Globally, Asian stocks struggled for direction on Thursday, nursing steep losses for the week on mounting investor jitters around the AI trade, while a divided Federal Reserve kept interest rates steady, leaving bond markets questioning where rates are headed.
Brent futures slipped below $90 per barrel, after jumping over 7% a day earlier as fighting in the Middle East escalated, although data showed tankers continued to make their way out of the region despite the continued missile and drone strikes.
The dollar was on the defensive after the US central bank held steady although the split decision left investors confused on whether the Fed will see through rate hikes to combat inflation. Yields on longer-dated U.S. Treasuries rose to 19-year highs.
Asian chipmakers have been the centre of attention this week after a deep selloff in South Korean stocks that wiped more than $2 trillion from the country’s equity market rocked markets and investors fretted about the returns from massive AI spending.
The KOSPI rose 4% in choppy trading on Thursday, but is staring at a 12% weekly decline that prompted Finance Minister Koo Yun-cheol to apologise for the introduction of single-stock leveraged ETFs.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose over 1% in early trading. Japan’s Nikkei was 2% higher, but set for a 3% drop in the week.
This is an intraday update
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