Negative sentiments drive selling at PSX, KSE-100 down 1,800 points
- Benchmark index was hovering at 174,284.55
Selling was observed at the Pakistan Stock Exchange (PSX), with the benchmark KSE-100 Index shedding over 1,800 points during the trading session on Wednesday.
At 1:18pm, the benchmark index was hovering at 174,284.55, down by 1,849.01 points or 1.05%.
Selling interest was seen in key sectors, including automobile assemblers, cement, fertiliser, OMCs and power generation. Index-heavy stocks, including HUBCO, POL, PPL, HBL, NBP and ENGRO, traded in the red.
In a key development, Pakistan has asked the United States for a $10 billion exchange stabilisation facility, reported Reuters, which, if approved, could provide a lifeline for the cash-strapped South Asian economy.
The request follows Pakistan’s role in brokering talks over the Iran war, which raised its diplomatic profile and stirred hopes that it could seek economic gains from Washington and other partners.
On Tuesday, PSX closed marginally higher as optimism over a possible easing of geopolitical tensions in the Middle East encouraged selective buying, although investors remained cautious amid uncertainty surrounding US-Iran relations.
The benchmark KSE-100 Index gained 205.83 points, or 0.12%, to close at 176,133.57 points.
Internationally, stocks jumped at the start of trading in Asia on Wednesday as investors took cues from a rebound in US markets, shrugging off climbing oil prices as Houthi rebels threatened to open a front in the widening Middle East conflict.
MSCI’s broadest index of Asia-Pacific shares outside Japan was up 1.2% as South Korea’s Kospi jumped more than 6%. Japan’s Nikkei 225 gained 1.9%, while S&P 500 e-mini futures edged 0.1% lower.
Brent crude nudged 0.6% higher to $91.55 a barrel after two oil tankers carrying Saudi crude to Asia reversed course in the Red Sea on Tuesday after threats of attack from Yemen’s Iran-aligned Houthis.
Overnight, the S&P 500 was up 0.9%, snapping a three-day losing streak, driven by a rebound in semiconductor shares after data showed Korean semiconductor exports almost tripled during the first few weeks of July and a gauge of Taiwanese export orders for June topped estimates.
This is an intraday update