PSX Faces Selling Pressure Amid Budget Concerns

The Pakistan Stock Exchange (PSX) experienced a downturn at the start of trading today, influenced by apprehensions surrounding the IMF budget. The benchmark KSE-100 Index declined by over 650 points during intraday trading on Tuesday.

As of 11:40 am, the index stood at 119,030.80, representing a decrease of 658.83 points, or 0.55%.

Sectors such as automobile assemblers, commercial banks, oil and gas exploration firms, and oil marketing companies (OMCs) saw significant selling activity. Major stocks including HUBCO, NBP, UBL, MARI, OGDC, PPL, and POL all traded negatively.

On the preceding day, Monday, the PSX remained relatively stable, entering a consolidation phase near its record highs. Investors were exhibiting caution in anticipation of the budget announcement.

The KSE-100 Index reached a high of 120,285.55 points during Monday’s trading session before closing at 119,689.63, reflecting a modest increase of 40 points or 0.03%.

Asian Markets and US Treasury Yields

Across the globe, Asian stock markets showed gains on Tuesday, while US Treasury yields stabilized. This provided some relief for the US dollar as investors assessed the debt burden of the US economy and awaited developments on trade agreements.

Last week, Moody’s downgraded its rating for US sovereign credit due to concerns over the country’s rising $36 trillion debt. This led to a sell-off in Treasuries on Monday, which then steadied during Asian trading hours on Tuesday.

Analysts suggest that markets are struggling for direction amid limited progress on trade deals.

The 30-year bond yield decreased by 3.5 basis points to 4.906%, after reaching an 18-month high of 5.037% in the previous session. Major US stock indexes reversed earlier losses to close mostly unchanged.

MSCI’s broadest index of Asia-Pacific shares outside Japan increased by 0.36%, nearing the seven-month high recorded last week. Japan’s Nikkei index rose by 0.65% in early trading.

Chinese stocks remained stable at the opening after the central bank reduced benchmark lending rates for the first time since October. Additionally, five of China’s largest state-owned banks lowered deposit interest rates.

The blue-chip index increased by 0.15%, while Hong Kong’s Hang Seng Index increased by 1%.

This is an intra-day update.