PSX: selling at bourse, KSE-100 down over 1,300 points
- Benchmark index was hovering at 166,851.39
The Pakistan Stock Exchange's KSE-100 Index fell over 800 points on Monday morning, continuing a trend of selling across key sectors amidst broader market concerns.
- Previous week's PSX performance and contributing factors.
- Global market reaction to cooler US jobs data.
- Decreased likelihood of a Federal Reserve rate hike.
Selling was evident at the Pakistan Stock Exchange (PSX), with the benchmark KSE-100 Index shedding more than 800 points in the opening minutes of trading on Monday.
At 10:01am, the benchmark index hovered at 166,851.39, down 1,304.10 points or 0.78%.
Selling was seen in key sectors, including automobile assemblers, cement, commercial banks, oil and gas exploration companies, OMCs, power generation and refinery. Index-heavy stocks, including PRL, NRL, HUBCO, MARI, OGDC, PPL, HBL, MEBL, NBP and UBL, traded in the red.
During the previous week, the PSX suffered a notable setback as stalled US-Iran negotiations, a global sell-off in sovereign fixed-income markets that pushed US Treasury yields to their highest levels since 2002, and a widening domestic trade deficit weakened investor risk appetite, sending the benchmark KSE-100 Index down 2,609.74 points, or 1.5%, to close at 168,155.48 points.
Internationally, stocks were off to a strong start on Monday while the dollar edged lower and bonds steadied, as investors trimmed bets on an aggressive policy tightening cycle by the Federal Reserve following cooler-than-expected US jobs data.
Trading was thin in Asia with holidays in China, South Korea and Australia’s New South Wales, leaving markets to take their cue from Wall Street’s moves on Friday.
Data last week showed US job growth slowed more than expected in September, and the nonfarm payrolls count for the prior two months was revised sharply lower, almost taking another rate hike from the Fed this month off the table.
Investors are now pricing in just a 22% chance that the Fed could raise rates this month, as compared to a 64% chance a week ago, according to the CME FedWatch tool.
The growing prospect of a Fed pause this month helped Japan’s Nikkei rise 2% early in the session, while Australian stocks added 0.5% and MSCI’s broadest index of Asia-Pacific shares outside Japan ticked 0.15% higher.
Nasdaq futures and S&P 500 futures advanced 0.3% and 0.1%, respectively, while EUROSTOXX 50 futures gained 0.3% and FTSE futures tacked on 0.4%.
This is an intraday update
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