Selling continues, KSE-100 loses over 2,800 points

Selling pressure persisted at the Pakistan Stock Exchange (PSX), with the benchmark KSE-100 Index shedding over 2,800 points on Thursday.

The index kicked off trading near the intra-day high of 164,357.47.

However, selling pressure kicked in almost immediately and continued through most of the morning session, as the benchmark KSE-100 dropped to an intra-day low of 160,391.18 amid broad-based selling.

At close, the benchmark index settled at 162,994.17, down by 2,829.70 points or 1.71%.

“Rising oil prices and the SBP’s rate hike are weighing on near-term sentiment for Pakistani equities,” Waqas Ghani, Head of Research at JS Global, told Business Recorder.

“Moreover, recent geopolitical developments over the past day have also been negative.

“As these pressures, particularly on the macro and geopolitical front, begin to ease, the market is likely to stabilise and recover.”

On Wednesday, PSX came under heavy selling pressure as disappointing corporate earnings, weakness in heavyweight stocks and cautious sentiment amid rising oil prices and geopolitical concerns pushed the Index sharply lower. The benchmark KSE-100 Index plunged 2,588.35 points, or 1.54%, to close at 165,823.88 points.

Internationally, AI-related shares fared well in Asia on Thursday after a raft of generally positive ‌earnings reports, while surging oil prices left bonds battered as central banks turned more hawkish on inflation and interest rates.

Investors feared the European Central Bank and Bank of England would likely warn of higher rates later in the day, after three Federal Reserve members voted to drop its easing bias in the most divided decision since 1992.

Outgoing ​Chair Jerome Powell also confirmed he would stay on as a governor for now to defend the institution’s independence as his successor, ​Kevin Warsh, hand-picked by President Donald Trump, who wants lower interest rates, moves toward confirmation.

Markets were quick to price ⁠out any rate cuts from the Fed this year, and there is a roughly even chance of a hike by next spring. US Treasury ​yields rose to a one-month high and the dollar gained broadly, hitting over 160 yen.

In Asia, Nasdaq futures rallied 1% as earnings from Google’s parent company topped forecasts, sending its shares up 7% in extended ‌trading. Results ⁠from and were also solid, raising hopes for Apple later in the day.

Meta Platforms disappointed as it raised its annual capital spending forecast to plough billions more into artificial intelligence infrastructure, sending its shares down 7%.

MSCI’s broadest index of Asia-Pacific shares outside Japan was flat on Thursday, but was still set for a whopping 16% gain this month. Japan’s Nikkei fell 1% but was up a similar 16% in April.

Meanwhile, the Pakistani rupee registered marginal gain, appreciating 0.01%, against the US dollar in the inter-bank market on Thursday. At close, the local currency settled at 278.77, a gain of Re0.03 against the greenback.

Volume on the all-share index decreased to 837.37 million from 1,087.44 million recorded in the previous close.

The value of shares decreased to Rs36.34 billion from Rs39.55 billion in the previous session.

WorldCall Telecom was the volume leader with 75.38 million shares, followed by B.O.Punjab with 68.53 million shares, and Cnergyico PK with 41.44 million shares.

Shares of 485 companies were traded on Thursday , of which 101 registered an increase, 348 recorded a fall, and 36 remained unchanged.