Market Under Pressure: PSX KSE-100 Index Declines

The Pakistan Stock Exchange (PSX) experienced adverse market dynamics, with the KSE-100 Index recording a significant drop of over 500 points during Monday’s trading session.

Index Performance

As of 11:40 am, the benchmark KSE-100 Index stood at 118,568.72, reflecting a decrease of 533.95 points, equivalent to a 0.45% decline.

Sectoral Performance

Prominent sectors such as automobile manufacturers, oil and gas exploration firms, oil marketing companies (OMCs), and power generation companies encountered selling activity. Major stocks including HUBCO, OGDC, PPL, POL, MARI, PSO, and SSGC all traded negatively.

Previous Week’s Performance

The PSX faced sustained headwinds throughout the prior week as investors exhibited caution in anticipation of the forthcoming federal budget. Concerns over proposed tax measures contributed to a continuous downward trajectory in the market.

The KSE-100 Index decreased by 546.47 points, or 0.45% week-on-week (WoW), settling at 119,102.67 points, down from the prior week’s close of 119,649.14 points.

Global Market Overview

Across Asia, stock markets generally trended upward on Monday, while the euro strengthened after the U.S. President extended a threat to impose tariffs on EU goods. This extension provides a temporary reprieve within the context of evolving trade policies.

The U.S. President postponed the deadline for trade discussions to July 9, extending it from the initial date of June 1. This decision followed the European Commission President’s indication that additional time was necessary to secure a mutually beneficial agreement.

Market confidence had been stabilizing following a notable selloff in the previous month. Investors are closely monitoring trade developments after a recent agreement with the UK and a provisional accord with China.

Recent policy shifts serve as a reminder of potential volatility, prompting analysts to observe a shift in investment from the U.S. towards Europe and Asia, reflecting concerns of a possible U.S. recession and associated global economic deceleration.

Concerns also arose regarding potential tariffs on imported iPhones sold to U.S. consumers.

MSCI’s index of Asia-Pacific shares outside Japan increased marginally, while Japan’s Nikkei also posted a slight gain.

This is an intra-day update.