PSX: KSE-100 sheds nearly 1,000 points amid geopolitical uncertainty

Selling pressure dominated the Pakistan Stock Exchange (PSX) as risks of a prolonged conflict in the Middle East grew after Iran threatened to retaliate against any new US attacks on its assets, with the benchmark KSE-100 Index shedding nearly 1,000 points on Tuesday.

The KSE-100 Index initially traded around the 173,500 level and touched an intra-day high of 173,736.19. However, selling pressure intensified around noon, dragging the benchmark sharply lower through the afternoon, hitting an intra-day low of 171,490.

The market subsequently staged a recovery in the final hours, climbing back towards 173,000, but failed to fully recoup its losses.

At close, the KSE-100 settled at 172,642.16, lower by 993.91 points, or 0.57%.

“The local bourse came under pressure today as the ongoing US-Iran conflict and elevated international oil prices continued to weigh on investor sentiment. Concerns over the potential impact on inflation, the external account, and Pakistan’s import bill prompted investors to book profits following the recent market gains. Selling was particularly evident across index-heavy sectors, keeping the broader market in the red,” brokerage house Topline Securities said in its post-market report.

On the negative side, UBL, LUCK, MEBL, NBP, and PPL were among the major contributors to the index decline, collectively dragging the KSE-100 Index down by approximately 485 points. Conversely, PSEL, MCB, and ATRL provided some support, collectively contributing around 199 points, it added.

On Monday, PSX came under heavy selling pressure with broad-based weakness across major sectors dragging the index down as investors remained cautious and selling intensified in commercial banks, oil and gas and cement stocks. The KSE-100 Index shed 1,692.74 points, or 0.97%, to close at 173,636.08 points.

Globally, the yen surged on Tuesday, while Asian markets struggled for direction as a mixed batch of regional economic data and fresh Iranian threats in the Persian Gulf drove oil prices and bond yields higher.

Japan’s Nikkei 225 fluctuated between gains and losses before edging up 0.2%, as the yen jumped as much as 0.6% to 153.51, its strongest level since February 18.

MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.2%, led by a 1.2% gain in the KOSPI.

S&P 500 e-mini futures were down 0.1% after a holiday in the US on Monday.

Oil prices moved higher for a third day as trading resumed in Asia, with Brent crude futures edging up 0.04% to $97.04 a barrel, after hitting a six-week high on Monday after Iran threatened to retaliate against any new attacks by targeting energy infrastructure across the Gulf, including US oil and gas interests.

Meanwhile, the Pakistani rupee extended its marginal gains against the US dollar, appreciating 0.01% in the interbank market on Tuesday. The local unit closed the day at 277.37, a gain of Re0.03 against the greenback.

Volume on the all-share index increased to 722.62 million from 679.19 million recorded in the previous close.

The value of shares rose to Rs27.94 billion from Rs23.69 billion in the previous session.

Cnergyico PK was the volume leader with 103.84 million shares, followed by Media Times Ltd with 103.04 million shares, and Pak Refinery with 41.09 million shares.

Shares of 496 companies were traded on Tuesday, of which 101 registered an increase, 359 recorded a fall, and 36 remained unchanged.