PSX: KSE-100 Index closes marginally lower after volatile trading

PSX: KSE-100 Index closes marginally lower after volatile trading. Add BRecorder as a trusted source on Google.

Key points

• The KSE-100 Index declined 1, 109.15 points, or 0.62 percent, to settle at 176, 846.36 points.
• While sterling steadied at $1.3600 after rising ⁠0.55% in the previous session, the euro held near its highest level since May 29 and changed hands at $1.1674.
• The Pakistan Stock Exchange's (PSX) benchmark KSE-100 Index extended its decline on Thursday, shedding 255 points by the close after a volatile trading session.
• The KSE-100 Index saw buying interest in the first half of the session, hitting an intra-day high of 178, 291.37.
• Nevertheless, the latter hours witnessed selling pressure that pushed the index to an intra-day low of 176, 156.57.

Notably, the Pakistan Stock Exchange's (PSX) benchmark KSE-100 Index extended its decline on Thursday, shedding 255 points by the close after a volatile trading session.

In practice, the KSE-100 Index saw buying interest in the first half of the session, hitting an intra-day high of 178, 291.37.

Nevertheless, the latter hours witnessed selling pressure that pushed the index to an intra-day low of 176, 156.57. At close, the benchmark index settled at 176, 591.77, down by 254.59 points or 0.14%.

While selective buying in the oil & gas exploration sector provided some backing, "Selling pressure remained concentrated in key heavyweight stocks. The sharp intra-day reversal reflected continued investor caution after the recent market correction. Sentiment remained subdued against the backdrop of renewed geopolitical uncertainty and elevated international oil costs, prompting investors to reduce exposure throughout major sectors, " brokerage house Topline Securities remarked in its post-market report.

On the negative side, UBL, HUBC, BAHL, HBL, and FATIMA were the major drags on the benchmark, collectively shaving approximately 458 points off the KSE-100 Index. Conversely, OGDC, ENGROH, and SAZEW were among the key contributors, collectively adding approximately 321 points to the index, it continued.

In a key development, Finance Minister Muhammad Aurangzeb on Wednesday confirmed that Pakistan formally sought a $10 billion Exchange Stabilisation Backing Facility from the United States, saying the initiative is aimed at strengthening foreign exchange stability and sending a positive signal to international capital markets rather than securing a conventional loan or credit line.

On Wednesday, PSX closed lower as reports of negotiations between the petroleum ministry and local refineries over a feasible reduction in diesel costs triggered selling in energy stocks, weighing on the broader market against the backdrop of continued volatility in international energy markets. The KSE-100 Index declined 1, 109.15 points, or 0.62 percent, to settle at 176, 846.36 points.

Internationally, global bonds steadied on Thursday after the US Treasury stepped in to stem a rout in its bond market, soothing investor nerves and sending the dollar lower while stocks climbed.

As ‌it sought to stanch an upward march in yields that sent the 30-year Treasury yield to its highest level since 2007 earlier this week, the US Treasury confirmed overnight it will double buyback sizes for long-duration debt.

For context, the pickup in market sentiment lifted stocks on Thursday, with MSCI's broadest index of Asia-Pacific shares outside Japan and Japan's Nikkei rising 1.2% each.

While S&P 500 futures edged 0.16% higher, nasdaq futures advanced 0.5%. EUROSTOXX 50 futures eased 0.14%.

For context, the retreat in yields weighed on the dollar. It languished near a 2-1/2-month low against a basket of currencies at 98.86.

While sterling steadied at $1.3600 after rising ⁠0.55% in the previous session, the euro held near its highest level since May 29 and changed hands at $1.1674. National Assembly passes bills related to military, National Command Authority. Trump warns of economic consequences for any country that supports Iran. Pakistan expects up to $100mn under first DPR programme.

Oil hits 3-week high on Middle East supply reservations against the backdrop of war impasse. Pakistan rupee records gain against US dollar. PM Shehbaz invites opposition to dialogue 'to strengthen economy, democracy'. Pakistan, Syria reaffirm brotherly ties, discuss regional developments. Gold per tola gains Rs13, 700 in Pakistan. Review plea against Imran Khan's Shifa transfer order 'returned with objections'.

Diesel gets massive Rs32.63 cut as petrol cost rises Rs2.97 per litre. Currency Rate USD PKR Interbank Selling. Item Value Karachi Cotton PKR/37.32 KG. Aisha Steel Mills Limited (CPS)(ASLCPS). J.A. Textile Mills Limited(JATM). J.K. Spinning Mills Limited(JKSM). D.G. Khan Cement Firm Limited(DGKC).

In short, PSX: KSE-100 Index closes marginally lower after volatile trading is the central thread here, and readers can expect follow-up reporting as the picture becomes clearer.