PSX: KSE-100 down over 900 points amid political noise

On Monday, the Pakistan Stock Exchange (PSX) witnessed a significant decline in its benchmark KSE-100 Index due to political volatility. By 11 am, the index was trading at 166,150.86, marking a loss of 938.41 points or 0.56%. Selling pressure was evident across several key sectors, including automobile manufacturers, cement producers, commercial banks, oil and gas exploration firms, OMCs, and power generation companies.

Major index-heavy stocks like HUBCO, MARI, OGDC, POL, PSO, MCB, MEBL, NBP, and UBL all traded in the red. The previous week, the PSX experienced similar selling pressures, with the index falling 1,066.20 points or 0.6% week-on-week, settling at 167,089.28 points. Globally, Asian stock markets started cautiously on Monday, with investors grappling with earnings season and fluctuating oil prices.

Confusion surrounded US President Donald Trump's announcement of an energy ceasefire between Ukraine and Russia, as neither party had confirmed the deal. Trump's proposal for Russia to boost diesel exports also faced criticism from lawmakers. South Korean stocks declined 1.1%, while MSCI's Asia-Pacific index outside Japan remained flat.

Wall Street saw mixed performance, with S&P 500 futures up 0.2% and Nasdaq futures rising 0.5%. In Europe, EUROSTOXX 50 futures increased 0.4%, while DAX and FTSE futures also gained 0.4% and 0.3%, respectively. Trading activity was light, with Japan's markets closed and the US on a partial holiday ahead of the earnings season, with major US banks resuming operations on Tuesday.

Earnings for the S&P 500 are projected to surge more than 30% in the third quarter, according to LSEG IBES, primarily driven by the tech sector. This report is based on an intraday update.