KSE-100 Index closes over 500 points lower after volatile trading

The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index closed with over 500 points loss after volatile trading on Tuesday.

The KSE-100 Index starting the session positive, hitting an intra-day high of 177,800.28.

However, selling was witnessed in the latter hours, which pushed the index to an intra-day low of 176,375.01.

At close, the benchmark index settled at 176,466.99, down by 508.69 points or 0.29%.

“A volatile session was witnessed at the local bourse today, with the market juggling between gains and losses amid heightened uncertainty stemming from the ongoing US-Iran conflict and its impact on global oil prices,” brokerage house Topline Securities said in its post-market report.

The refinery sector remained the talk of the town, attracting significant investor interest and witnessing a heavy surge in traded volumes, it added.

“Market chatter suggests that five refineries could sign their long-awaited upgradation agreements this week, further fueling speculation and buying interest across the sector. Investors remained closely focused on the sector, making refineries one of the hottest themes at the local bourse.”

On the positive side, SYS, ENGROH, EFERT, OGDC, and AGP were among the key contributors, collectively adding approximately 359 points to the KSE-100 Index. Conversely, MEBL, MCB, BAFL, and LUCK emerged as major laggards, collectively shaving approximately 294 points off the index, Topline said.

On Monday, renewed geopolitical tensions between the United States and Iran, coupled with a sharp rise in international crude oil prices, weighed on investor sentiment at PSX. The KSE-100 Index fell 720.83 points, or 0.41%, to close at 176,975.68.

Internationally, selling drove global bond yields to major new highs on Tuesday as renewed fighting in the Middle ​East lifted oil prices above $90 a barrel and put pressure on stock markets around the world.

‌The 10-year US Treasury yield, a benchmark for prices across asset classes, rose 2.2 basis points to a near 20-month top of 4.78%. Japan’s 10-year benchmark was closing in on 3%, a level not seen for a generation.

US futures steadied after Wall Street indexes notched ​modest overnight falls, but the mood was a little nervous ahead of US jobs data on Friday, which ​could open the door to an interest rate hiking cycle starting as soon as this ⁠month.

Higher oil prices and rising US-Iran tension are stoking worries about inflation, which is negative for bonds, just as ​Federal Reserve Chair Kevin Warsh has reset expectations for the outlook. In a speech late last week, he signalled policymakers could ​move if price pressures fail to show signs of easing.

Japan’s Nikkei dipped 0.2% in early trade, and the Hang Seng ​fell 0.7%, with the tone set by the lacklustre debut of clothing retailer Shein Global.

Markets are pricing an interest rate hike in New Zealand on ​Wednesday and an increase in ​Europe next week. Hikes ⁠this month in the U.S. and Japan are at better-than-even odds.

Meanwhile, the Pakistani rupee extended its marginal gains against the US dollar on Tuesday. The local unit closed the day at 277.46, a gain of Re0.01 against the greenback.

Volume on the all-share index decreased to 784.46 million from 937.27 million recorded in the previous close.

The value of shares declined to Rs37.41 billion from Rs39.13 billion in the previous session.

Cnergyico PK was the volume leader with 191.73 million shares, followed by Pak Refinery with 58.15 million shares, and WorldCall Telecom with 40.78 million shares.

Shares of 498 companies were traded on Tuesday, of which 174 registered an increase, 292 recorded a fall, and 32 remained unchanged.