PSX Loses Ground After Initial Gains

After experiencing slight gains in early trading hours on Thursday, the Pakistan Stock Exchange (PSX) encountered selling pressure, resulting in the KSE-100 Index declining by over 400 points during intraday trade.

As of 2pm, the KSE-100 Index stood at 122,343.65, representing a decrease of 417.99 points, or 0.34%.

On Wednesday, the PSX saw a mixed trading session, buoyed by increased investor confidence due to de-escalating tensions in the Middle East. Major indices showed gains for the second consecutive day, accompanied by robust market activity.

The KSE-100 Index increased by 515 points, or 0.42%, concluding the session at 122,761.64 points.

Global Market Overview

Asian stock markets showed signs of weakness on Thursday, while oil prices remained stable and the euro held near a 3-1/2-year high. Investors are currently assessing geopolitical, economic, and fiscal uncertainties while awaiting the tariff deadline set by US President Donald Trump.

Market sentiment has been positively influenced by a seemingly stable ceasefire between Israel and Iran, which has lowered the risk of disruptions to global oil trade.

MSCI’s broadest index of Asia-Pacific shares outside Japan saw minimal movement in early trading, following a pause in Wall Street’s overnight rally. Japan’s Nikkei index increased by 0.9%, reaching a four-month high.

The US dollar experienced increased selling activity following a media report indicating that Trump is considering announcing Jerome Powell’s replacement as Federal Reserve Chair by September or October, potentially undermining Powell’s position.

This development propelled the euro to its highest level since November 2021, last trading at $1.6805. The Swiss franc strengthened to a decade-high, while the Japanese yen appreciated by 0.35% to 144.70 per dollar.

Trump has frequently criticized Powell for not lowering interest rates and has suggested the possibility of either dismissing him or appointing a successor soon, which has negatively impacted investor confidence in U.S. assets and challenged the central bank’s independence.

This information reflects an intra-day market update.