Bearish Trend Grips Pakistan Stock Exchange

The Pakistan Stock Exchange (PSX) experienced a downturn as the KSE-100 Index shed over 1,000 points during Wednesday’s trading session.

As of 12pm, the benchmark index was recorded at 120,952.18, reflecting a decrease of 1,018.86 points, which translates to a 0.84% drop.

Significant selling activity was evident across multiple sectors, including automobile manufacturing, cement production, commercial banking, oil and gas exploration, oil marketing companies (OMCs), power generation, and refineries. Major stocks such as HUBCO, PSO, MARI, OGDC, POL, PPL, MCB, MEBL, and NBP all traded negatively.

Previous Day’s Performance

The PSX concluded Tuesday’s session with a bearish sentiment, as key indices declined amid widespread selling. The KSE-100 Index decreased by 254.32 points, a 0.21% reduction, closing at 121,971.04 points.

Global Market Influences

Internationally, market anxiety remained high due to escalating tensions in the Middle East, which drove oil prices upward and prompted investors to seek refuge in US Treasuries and the dollar, while divesting from equities.

Growing investor apprehension stems from the potential for increased US military involvement as the conflict between Israel and Iran continues. Concerns were further fueled by statements suggesting diminishing US patience.

Commodity and Equity Market Movements

Oil prices continued their upward trajectory on Wednesday, with Brent crude futures rising by 0.33% to $76.70 per barrel, and US crude increasing by 0.45% to $75.18 per barrel. Both benchmarks had seen gains exceeding 4% in the previous session.

The widespread risk-aversion in global markets also intensified.

MSCI’s broadest index of Asia-Pacific shares excluding Japan decreased by 0.26%, mirroring a 0.4% decline in EUROSTOXX 50 futures.

US stock futures showed minimal change after Wall Street’s cash session concluded negatively overnight.

Currency Market Update

In currency markets, the dollar strengthened to a one-week high of 145.445 yen and maintained most of its gains against other currencies.

The euro struggled to recover from its 0.7% drop on Tuesday and was last trading at $1.1487.

Note: This is an intra-day update.