PSX: KSE-100 gains over 750 points, albeit late-session selling

The Pakistan Stock Exchange (PSX) maintained buying momentum, with the benchmark KSE-100 Index closing with a gain of over 750 points on Thursday.

The benchmark index opened with volatility and initially declined towards its intra-day low of 165,613.11 points. It subsequently staged a recovery, gaining momentum through the morning and climbing above 166,000 points. The upward trend strengthened around mid-day, with the index reaching an intra-day high of 166,877.01 points.

However, the rally lost momentum in the afternoon, with the index retreating from its peak amid profit-taking.

At close, the benchmark index settled at 166,186.16 points, up 768.66 points or 0.46%.

“The market’s recovery was supported by selective accumulation in key index-heavy stocks following the recent correction. However, investor sentiment remained cautious amid fluctuations in international oil prices, geopolitical developments, domestic macroeconomic indicators, and institutional fund flows,” brokerage house Topline Securities said in its post-market report.

PTC, FFC, HUBC, OGDC, and SYS emerged as the major contributors to the index’s gains, collectively adding approximately 340 points to the benchmark, Topline said.

PSX rebounded on Wednesday, as buying interest in refinery stocks, particularly Pakistan Refinery Limited and other energy-related shares, supported the market. However, investors remained cautious amid a lack of fresh triggers and persistent geopolitical uncertainty.

The KSE-100 Index advanced by 641.07 points, or 0.39%, to close at 165,417.51 points.

Globally, markets started the day on the back foot as trading kicked off in Asia on Thursday, with a quicker-than-expected rise in US consumer price inflation raising expectations that the Federal Reserve will act later this year and pushing stocks lower.

MSCI’s broadest index of Asia-Pacific shares outside Japan was down 1.2%, led ​by a 5.6% plunge in South Korea’s KOSPI, while the Nikkei 225 fell 1.3%. S&P 500 ​e-mini futures were down 0.3%.

Overnight, stocks on Wall Street logged their third day of ​declines after US consumer price inflation accelerated by more than expected in September.

The S&P 500 fell 1.1%, the Nasdaq Composite tumbled 1.9%, and a gauge of semiconductor stocks extended losses into a sixth day, as the prospect of higher interest rates pummelled shares ​of Oracle, CoreWeave and other AI stocks sensitive to higher borrowing costs.

The CPI data lifted expectations of interest rate hikes from the Federal Reserve over the course of the year ahead, possibly as soon as later this month. Fed funds futures are now pricing an implied 31.6% probability of a 25-basis-point hike ​at the US central bank’s ​next two-day meeting on ⁠October 28, compared to a 22.1% chance a day earlier, according to the CME Group’s FedWatch tool.

Meanwhile, the Pakistani rupee stretched its marginal gains against the US dollar, appreciating 0.01% in the inter-bank market on Thursday. The local unit closed the day at 276.92, a gain of Re0.03 against the greenback.

Volume on the all-share index decreased to 517.60 million from 585.89 million recorded in the previous close.

The value of shares rose to Rs23.57 billion from Rs20.07 billion in the previous session.

Cnergyico PK was the volume leader with 62.81 million shares, followed by Pak Refinery with 43.44 million shares, and WorldCall Telecom with 19.46 million shares.

Shares of 501 companies were traded on Thursday, of which 292 registered an increase, 169 recorded a fall, and 40 remained unchanged.