The Pakistan Stock Exchange (PSX) exhibited vulnerability to external shocks on Wednesday with the benchmark KSE-100 Index coming under renewed selling pressure as investors adopted a cautious stance and reduced exposure to equities. The index struggled to sustain its early gains and gradually slipped deeper into negative territory, reflecting weak sentiment across the broader market.
The benchmark opened with a marginal positive bias, rising 14.07 points to 176,147.63 at 9:39am. However, the initial strength proved short-lived as selling emerged across key sectors. The index touched an intraday high of 176,255.64 before reversing direction and hitting a low of 174,104.07, eventually settling at 174,429.93, down 1,703.64 points, or 0.97%, from the previous close.
“The market remained under pressure as Brent crude hovered near $96 per barrel amid escalating geopolitical tensions in the Middle East. In addition to concerns surrounding the Strait of Hormuz, growing apprehensions over the Bab el-Mandeb corridor further dampened investor sentiment and kept risk appetite subdued,” said Ahmed Sheraz of KASB KTrade.
Sector-wise, commercial banks, along with cement and fertiliser stocks led the decline. UBL, FFC, Engro Holdings, Hub Power and Lucky Cement emerged as the major negative contributors weighing on the benchmark.
Read: PSX gives up early gains as profit-taking takes hold
In a positive development amid the broader market pressure, UBL reported a strong quarterly result, posting earnings of around Rs15 per share and announcing a cash dividend of Rs8 per share. The bank also recorded 13% growth in deposits, reflecting continued strength in its core business and overall earnings momentum.
Meanwhile, trading activity remained subdued, with around 266 million shares changing hands in the index. Overall trading volume decreased to 695.6 million shares from one billion recorded a day ago while the value of traded shares stood at Rs25.4 billion. Shares of 493 companies were traded, of which 108 stocks closed higher, 353 fell, and 32 remained unchanged. Trust Brokerage was the volume leader with trading in 134.2 million shares, rising Rs0.02 to close at Rs2.41.
Looking ahead, market sentiment is expected to remain largely driven by geopolitical developments and oil prices. As long as regional tensions persist and crude prices remain elevated, volatility is likely to continue. However, strong corporate earnings may provide support to fundamentally sound stocks, Sheraz said.
The latest decline once again underscored the market’s vulnerability to external shocks, with geopolitical risks and movements in global oil prices continuing to shape investor sentiment and market direction.Latest News, Breaking News & Top News Stories | The Express TribuneOur CorrespondentRead More