PSX: Selling continues as KSE-100 sheds nearly 400 points

Selling persisted at the Pakistan Stock Exchange (PSX) on Wednesday as Middle Eastern tensions escalated, causing the KSE-100 Index to drop nearly 400 points. The benchmark index opened at 168,994.54, slipping 397.78 points or 0.23%. Trading losses were seen in sectors like automobiles, cement, commercial banking, oil and gas exploration, and oil marketing companies.

Index-top stocks such as OGDC, PPL, PSO, HBL, MCB, and NBP declined. On Tuesday, the PSX rebounded strongly after the State Bank of Pakistan decided to keep the policy rate unchanged at 11.50%, leading to selective buying and helping the market recover substantial past losses. The KSE-100 Index ended the session at 169,392.33, up 1,421.67 points.

Globally, stocks experienced tentative gains early in the Asian trading session, following a slight rise in global bond yields and oil prices prior to the Federal Reserve's decision later that day. The MSCI's Asia-Pacific index outside Japan saw fluctuating gains and losses, concluding up 0.2%, driven by a 0.8% increase in Korean shares.

The S&P 500 e-mini futures rose by 0.1%. On Wall Street, the S&P 500 fell by 0.5%, marking its second consecutive day of losses, as the yield on the 10-year Treasury bond hit its highest since 2007. The US bond's yield dropped to 4.9875% from its 5% peak on Tuesday, ahead of a Federal Reserve rate decision and a press conference by Fed Chair Kevin Warsh.