The Pakistan Stock Exchange (PSX) witnessed a predominantly negative session on Tuesday, with the benchmark KSE-100 Index closing down 1,600 points to over 168,915. Investor caution prevailed as geopolitical uncertainties surrounding Iran-US developments continued to weigh on market sentiment.
KSE-100 Index closed at 168,916 points, down 1,590 points (-0.93% DoD), in a mixed yet predominantly negative session as investor sentiment remained cautious amid persistent geopolitical uncertainty surrounding Iran-US developments.
Market participation stayed relatively muted in heavyweight sectors, with benchmark KSE-100 volumes clocking in at 424mn shares, according to Ahmed Sheraz of KASB KTrade.
Pressure remained concentrated in commercial banks and select index-heavy names, including UBL, LUCK, ENGROH, HBL, HUBC, SYS, and MLCF, which collectively dragged the benchmark lower.
On the volume board, major activity was witnessed in CNERGY (154mn shares), KEL (107mn shares), and PIBTL (23mn shares). The only positive exception was TRG, which hit the upper limit following the Supreme Court-related development.
Investor concerns largely revolved around the continued surge in international oil prices, with Brent hovering near USD108-109/bbl, raising fears of further inflationary pressure domestically through higher fuel and energy costs. The recent upside surprise in inflation, coupled with SBP’s earlier 100bps rate hike, has further reinforced cautious positioning across equities.
Going forward, the market is expected to remain headline-driven and volatile, with investor focus centered on Iran-US negotiations and developments surrounding the Strait of Hormuz. Until geopolitical clarity emerges, sentiment is likely to stay mixed-to-negative.
Read: PSX sheds 610 points in cautious trading
On Monday, investors offloaded their holdings at PSX over uncertainty surrounding US-Iran negotiations for a peace deal, which pulled the KSE-100 Index down by 610 points.
Trading commenced on a negative note, with the benchmark index sliding 1,433.57 points, or 0.84%, within minutes to hit 169,682.25 at 9:34 am. Selling was witnessed in key sectors including cement, commercial banks, oil and gas exploration, oil marketing and power generation, which kept the market under pressure during early hours.
The bourse briefly entered positive territory around midday, supported by value buying and improved sentiment. However, stock selling in heavyweight sectors erased gains, dragging the index back into the red.
At close, the KSE-100 recorded a dip of 609.51 points, or 0.36%, to 170,506.31 amid volatile trading as investors remained cautious over geopolitical developments and profit-taking.
Arif Habib Limited (AHL) analyst Ali Najib said that the PSX witnessed a range-bound session, with the KSE-100 closing at 170,506, down 610 points (-0.36%). Momentum stayed subdued due to geopolitical worries as aggressive rhetoric from both the US and Iranian officials heightened concerns over further escalation in the region.Latest News, Breaking News & Top News Stories | The Express TribuneOur CorrespondentRead More