PSX: KSE-100 Index closes marginally lower after volatile trading

The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index extended its decline on Thursday, shedding 255 points by the close after a volatile trading session.

The KSE-100 Index saw buying interest in the first half of the session, hitting an intra-day high of 178,291.37.

However, the latter hours witnessed selling pressure that pushed the index to an intra-day low of 176,156.57.

At close, the benchmark index settled at 176,591.77, down by 254.59 points or 0.14%.

“Selling pressure remained concentrated in key heavyweight stocks, while selective buying in the oil & gas exploration sector provided some support. The sharp intra-day reversal reflected continued investor caution following the recent market correction. Sentiment remained subdued amid renewed geopolitical uncertainty and elevated international oil prices, prompting investors to reduce exposure across major sectors,” brokerage house Topline Securities said in its post-market report.

On the negative side, UBL, HUBC, BAHL, HBL, and FATIMA were the major drags on the benchmark, collectively shaving approximately 458 points off the KSE-100 Index. Conversely, OGDC, ENGROH, and SAZEW were among the key contributors, collectively adding approximately 321 points to the index, it added.

In a key development, Finance Minister Muhammad Aurangzeb on Wednesday confirmed that Pakistan formally sought a $10 billion Exchange Stabilisation Support Facility from the United States, saying the initiative is aimed at strengthening foreign exchange stability and sending a positive signal to international capital markets rather than securing a conventional loan or credit line.

On Wednesday, PSX closed lower as reports of negotiations between the petroleum ministry and local refineries over a possible reduction in diesel prices triggered selling in energy stocks, weighing on the broader market amid continued volatility in international energy markets. The KSE-100 Index declined 1,109.15 points, or 0.62 percent, to settle at 176,846.36 points.

Internationally, global bonds steadied on Thursday after the US Treasury stepped in to stem a rout in its bond market, soothing investor ​nerves and sending the dollar lower while stocks climbed.

The US Treasury announced overnight it will double buyback sizes for long-duration debt, as ‌it sought to stanch an upward march in yields that sent the 30-year Treasury yield to its highest level since 2007 earlier this week.

The pickup in market sentiment lifted stocks on Thursday, with MSCI’s broadest index of Asia-Pacific shares outside Japan and Japan’s Nikkei rising 1.2% each.

Nasdaq futures advanced 0.5%, while S&P 500 futures edged 0.16% higher. EUROSTOXX 50 futures eased 0.14%.

The retreat in yields weighed on the dollar, which languished near a 2-1/2-month low against a basket of currencies at 98.86.

The euro held near its highest level since ​May 29 and changed hands at $1.1674, ​while sterling steadied at $1.3600 after rising ⁠0.55% in the previous session.

Meanwhile, the Pakistani rupee extended its marginal gains, appreciating 0.01%, against the US dollar on Thursday. The local unit closed the day at 277.57, a gain of Re0.03 against the greenback.

Volume on the all-share index decreased to 665.19 million from 787.89 million recorded in the previous close.

The value of shares declined to Rs30.79 billion from Rs39.57 billion in the previous session.

Cnergyico PK was the volume leader with 221.43 million shares, followed by F. Nat.Equities with 25.11 million shares, and Globe Residency with 18.82 million shares.

Shares of 492 companies were traded on Thursday, of which 144 registered an increase, 321 recorded a fall, and 36 remained unchanged.