PSX: Selling continues, KSE-100 sheds over 400 points

The Pakistan Stock Exchange (PSX) experienced a decline in trading on Thursday as geopolitical tensions escalated in the Middle East, leading to increased attacks on shipping. The benchmark KSE-100 Index dropped over 400 points during the opening minutes of trading, settling at 171,510.66 – a loss of 0.25%. Key sectors, such as automobile assemblers, cement, commercial banks, fertiliser, oil and gas exploration companies, and OMCs, witnessed selling pressure.

Notably, index-heavy stocks including PSO, MARI, OGDC, PPL, FFC, MCB, MEBL, and NBP were recorded in the red. The previous day, geopolitical tensions and rising global crude oil prices contributed to the PSX's negative performance, with the KSE-100 Index falling by 698.56 points or 0.40% to close at 171,943.60 points. Internationally, Asian stocks dipped as oil prices remained above $100 a barrel due to the ongoing conflict in the Middle East, causing investors to remain cautious ahead of US inflation data that would impact monetary policy.

US Treasury yields remained steady at 4.8406% after reaching their highest level since 2023 in the previous session, despite the Treasury Department announcing a $6 billion buyback of longer-dated bonds, which some investors hoped for more. Brent crude futures rose to $101.4 per barrel, breaching the $100 threshold for the first time since July as traders contemplated the potential for inflationary pressure.

MSCI's Asia-Pacific index outside Japan declined by 1%, while Japan's Nikkei and South Korea's KOSPI both dropped by over 1%.