PSX: KSE-100 falls nearly 1% amid geopolitical tensions

Selling pressure was observed at the Pakistan Stock Exchange (PSX) as concerns over supply disruption intensified after the US and Iran exchanged ​strikes overnight, with the benchmark KSE-100 Index shedding nearly 1% on Wednesday.

At close, the benchmark index settled at 174,776.59, down by 1,690.40 points or 0.96%.

“The market remained under pressure throughout the session, as renewed geopolitical tensions between the United States and Iran, coupled with a sharp increase in international oil prices, weighed on investor sentiment and triggered cautious trading across the broader market,” brokerage house Topline Securities said in its post-market report.

On the negative side, MEBL, UBL, PPL, FFC, and LUCK were among the major contributors to the index decline, collectively dragging the KSE-100 by approximately 604 points. Conversely, EFERT, THALL, and AKBL provided some support, collectively contributing approximately 139 points to the index.

On Tuesday, renewed uncertainty surrounding the US-Iran conflict and fluctuations in global oil prices kept investors cautious at the PSX, as heavy selling outweighed gains in selected technology and energy counters. The KSE-100 Index closed at 176,466.99, down 508.69 points, or 0.29%.

Globally, stocks slumped in Asian trading on Wednesday as a bond market-induced selloff on ‌global markets spilt over into the region, after renewed attacks by the US on Iran pushed oil prices higher.

MSCI’s broadest index of Asia-Pacific shares outside Japan tumbled 1.5% as South Korea’s KOSPI dropped more than 3%, while the Nikkei 225 was down 2.6%. S&P 500 ​e-mini futures were down 0.1%.

Overnight on Wall Street, the S&P 500 slipped 0.7%, and the Nasdaq Composite fell 1% as a surge in government bond yields weighed on equities.

The declines came as data from ​the Institute for Supply Management released on Tuesday showed U.S. manufacturing activity moderated in August ​amid a slowdown ⁠in new orders, but remained in expansionary territory.

Traders believe that the Federal Reserve is likely to lift interest rates at its next meeting in two weeks, though a hike is not certain.

Fed funds futures are pricing an implied 67% probability of ⁠a 25-basis-point ​increase in benchmark borrowing costs at the U.S. central bank’s two-day meeting ​ending on September 16, compared to a 39.6% chance a week ago, according to the CME Group’s FedWatch tool.

Meanwhile, the Pakistani rupee extended its marginal gains against the US dollar on Wednesday. The local unit closed the day at 277.45 a gain of Re0.01 against the greenback.

Volume on the all-share index decreased to 610.18 million from 784.46 million recorded in the previous close.

The value of shares declined to Rs31.86 billion from Rs37.41 billion in the previous session.

Cnergyico PK was the volume leader with 124.89 million shares, followed by WorldCall Telecom with 38.70 million shares, and Pak Refinery with 37.68 million shares.

Shares of 501 companies were traded on Monday, of which 113 registered an increase, 356 recorded a fall, and 32 remained unchanged.