Volatility was observed at the Pakistan Stock Exchange (PSX) on Friday, with the benchmark KSE-100 Index losing over 600 points during the final hours of the trading session.
At close, the benchmark index settled at 163,360.53, a decrease of 638.50 points or 0.66%.
“KSE-100 Index largely traded in negative zone during the trading session on account of continued profit taking by investors,” brokerage house Topline Securities said in its post-market report.
Top negative contribution to the index came from MARI, UBL, HBL, POL & ENGROH, as they cumulatively contributed -681 points to the index, it added.
On Thursday, the PSX closed on a negative note as heavy profit-taking in major sectors, even as the bourse witnessed its highest-ever trading volume on record. The KSE-100 Index fell by 1,241.66 points, or 0.75%, to close at 164,444.72 points.
Internationally, Asian shares tracked Wall Street lower, bonds extended gains and gold hit a fresh record on Friday, with signs of credit stress at US regional banks putting investors on edge.
Overnight, Zions sank 13% after disclosing it would take a $50 millionloss in the third quarter on two loans from its California division. Western Alliance’s stock slumped 11% after it initiated a lawsuit alleging fraud by Cantor Group V, LLC.
The two developments pummeled US banking stocks.
Both S&P 500 futures and Nasdaq futures lost 0.3% ahead of more earnings from US regional banks later in the day. European stock futures fell 0.7%, while FTSE futures dropped 0.9%.
Sentiment in equities has also taken a hit due to rising trade tensions between China and the United States. China on Thursday accused the US of stoking panic over its rare earth controls, rejecting a White House call to roll back the curbs.
MSCI’s broadest index of Asia-Pacific shares outside Japan dropped 0.9%, taking the week to negative territory. Japan’s Nikkei lost 1% as its banking index tumbled.
Taiwan’s shares fell 0.9% even after chipmaker TSMC posted a record quarterly profit and issued a rosy forecast for spending on artificial intelligence.
Volume on the all-share index decreased to 1,978 million from 3,078 million recorded in the previous close. The value of shares declined to Rs36.99 billion from Rs50.61 billion in the previous session.
WorldCall Telecom was the volume leader with 891.37 million shares, followed by K-Electric Ltd with 262.73 million shares, and B.O.Punjab with 84.16 million shares.
Shares of 483 companies were traded on Friday, of which 166 registered an increase, 277 recorded a fall, and 40 remained unchanged.