PSX: KSE-100 Index closes 340 points lower after mixed trading

The Pakistan Stock Exchange (PSX) observed mixed trading on Monday as its benchmark KSE-100 Index swayed in a narrow range before closing the day lower by 340 points.

The KSE-100 opened the trading session positive, hitting an intra-day high of 171,126.52, followed by selling that pushed the index to an intra-day low of 170,120.50.

At close, the benchmark index settled at 170,425.62, down 339.60 points or 0.20%.

Adviser to the Finance Minister Khurram Schehzad said on Sunday Pakistan had discussed potential financing from the US Export-Import Bank (US Exim Bank) for Boeing aircraft for privatised Pakistan International Airlines (PIA), but no government loan or sovereign guarantee had been announced for the airline.

During the previous week, the PSX remained cautious and range-bound, as persistent geopolitical uncertainty and shifting domestic political developments constrained investor risk appetite. The KSE-100 Index eased by 119.37 points, or 0.1%, to close at 170,765.22 points.

Internationally, share markets were mostly lower on Monday as oil prices popped higher again amid doubts that the United States and Iran will reach a truce anytime ​soon, keeping bonds under pressure ahead of a week packed with economic news.

Over the weekend, US President Donald Trump rejected an Iranian proposal ‌to reopen the Strait of Hormuz, claiming Tehran was desperate to make a deal. Trump said talks would continue this week, though Iran shows no sign of watering down its proposals.

A dearth of refining capacity has in turn lifted diesel ​prices to all-time highs far above crude, raising the risk that inflation will become embedded in pricing and wage decisions.

Central banks have responded with ​a round of rate hikes, with the Reserve Bank of Australia likely to be the next to tighten when it meets on ⁠Tuesday.

Markets now imply a 66% chance the Federal Reserve will hike for a second straight meeting in October, with around 90 basis points of tightening priced out ​to late next year.

Japan’s Nikkei went flat, while the volatile South Korean stock market ‌slid 2.4%. ⁠MSCI’s broadest index of Asia-Pacific shares outside Japan eased 0.6%.

Meanwhile, the Pakistani rupee extended its marginal gains against the US dollar in the inter-bank market on Monday. The local unit closed the day at 277.15, a gain of Re0.01 against the greenback.

Volume on the all-share index decreased to 421.01 million from 482.76 million recorded in the previous close.

The value of shares lowered to Rs17.74 billion from Rs19.28 billion in the previous session.

Cnergyico PK was the volume leader with 61.59 million shares, followed by Tasdeeq Information with 60.32 million shares, and Pak Refinery with 24.14 million shares.

Shares of 496 companies were traded on Monday, of which 181 registered an increase, 267 recorded a fall, and 48 remained unchanged.