PSX Faces Bearish Trend, KSE-100 Index Declines

The Pakistan Stock Exchange (PSX) experienced a downturn as trading commenced on Wednesday, with the KSE-100 Index registering a loss of over 450 points during the early hours.

As of 11:20am, the benchmark index stood at 121,512.84, reflecting a decrease of 458.20 points, which translates to a 0.38% decline.

Selling activity was evident across multiple sectors, including automobile manufacturers, cement, commercial banking, oil and gas exploration, OMCs, power generation, and refining. Major stocks such as HUBCO, PSO, MARI, OGDC, POL, PPL, MCB, MEBL, and NBP were among those trading negatively.

The PSX concluded Tuesday’s session on a bearish note, with key indices retracting amidst widespread declines in individual stocks. The KSE-100 Index closed at 121,971.04 points, down by 254.32 points, or 0.21 percent.

Global Market Influences

Globally, market sentiment was largely influenced by concerns regarding increasing tensions in the Middle East. This led to a rise in oil prices and a surge in demand for safe-haven assets like US Treasuries and the dollar, accompanied by a sell-off in equities.

Investors are increasingly anxious about potential direct military intervention from the US, particularly as the conflict between Israel and Iran extends into its sixth day. President Donald Trump’s call for Iran’s unconditional surrender and his warning about dwindling US patience have contributed to this unease.

Oil prices continued their upward trajectory on Wednesday, with Brent crude futures increasing by 0.33% to reach $76.70 per barrel, while US crude saw a 0.45% increase to $75.18 a barrel. Both benchmarks had experienced gains exceeding 4% in the previous trading session.

The overall risk-off attitude across various markets continues to strengthen.

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 following an overnight cash session on Wall Street that ended in negative territory.

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 a 0.7% drop on Tuesday and was last valued at $1.1487.

This is an intra-day market update.