PSX Experiences Selling Pressure, KSE-100 Index Drops

The Pakistan Stock Exchange (PSX) encountered selling pressure as trading commenced today, leading to a significant dip in the benchmark KSE-100 Index, which shed nearly 1,000 points in the initial minutes.

As of 10:35 am, the KSE-100 Index was recorded at 132,419.08, reflecting a decrease of 984.11 points, equivalent to a 0.74% decline.

The downturn was fueled by selling activity in critical sectors, notably commercial banks, fertilizer, oil and gas exploration, and refinery. Major stocks, including ARL, NRL, MARI, OGDC, PPL, POL, MCB, MEBL, and UBL, all experienced negative trading.

On the preceding day, the PSX exhibited a volatile trading pattern, oscillating between gains and losses before closing almost unchanged at 133,403.19 points, marking a marginal increase of 33 points or 0.02%.

Globally, the US dollar strengthened to a near 2-1/2-week high against major currencies. Simultaneously, copper prices surged to an all-time high overnight following US President Donald Trump’s expansion of his global trade measures by proposing a 50% tariff on the metal.

Trump’s announcement of impending levies on semiconductors and pharmaceuticals impacted Wall Street on Tuesday, with indications suggesting further weakness today.

Across the Asia-Pacific region, stock markets displayed mixed performance as investors assessed Trump’s evolving trade strategies. Key US trading partners in the region, including Japan and South Korea, face an August 1 deadline to secure a trade agreement or face new tariff rates, although Trump has conveyed mixed signals regarding the inflexibility of this date.

Earlier this week, Trump stated the deadline was “firm, but not 100% firm,” suggesting that the deadlines were a negotiating strategy. However, Trump subsequently appeared to reinforce his position by stating, “No extensions will be granted.”

Japan’s Nikkei saw a slight decrease of 0.2%. The Australian stock index showed a decline of 0.4%, while Hong Kong’s Hang Seng went down by 0.9%.

In contrast, mainland Chinese blue chips experienced a rise of 0.2%, and South Korea’s KOSPI increased by 0.5%.

US S&P 500 futures saw a decrease of 0.1%, following a 0.1% loss for the cash index on Tuesday.

This information reflects an update during the trading day.