PSX: selling at bourse, KSE-100 down over 500 points

Selling was evident at the Pakistan Stock Exchange (PSX) on Wednesday, as investors expressed concerns over attacks on shipping in the Strait of Hormuz. The KSE-100 Index, which served as a benchmark, dropped over 500 points during the early minutes of trading. At 9:45am, the index was trading at 178,812.16, marking a decline of 523.08 points or 0.29%.

Various key sectors experienced a drop in their stock prices, including automobile assemblers, cement manufacturers, commercial banks, oil and gas exploration firms, and OMCs. Notable stocks that traded in the red included HUBCO, SSGC, MARI, PPL, MCB, MEBL, NBP, and UBL. Just a day earlier, the PSX had experienced a substantial rally, with investor sentiment buoyed by easing geopolitical tensions and President Donald Trump's recent remarks on peace.

The KSE-100 Index surged 5,448.56 points, or 3.13%, to close at 179,335.24 points. Globally, bond prices fell, and the US dollar held steady after a strong US inflation report and hawkish comments from Federal Reserve officials raised the likelihood of a significant half-point rate increase in December. Fed Governor Christopher Waller suggested that the core US inflation rate of 0.3% in October might warrant a 50-basis-point hike at the next meeting.

Dallas Fed President Lorie Logan and Chicago Fed President Austan Goolsbee expressed the need for two or more further rate hikes, while Philadelphia Fed President Anna Paulson called for gradual increases. Fed funds futures indicated a near certainty of a quarter-point move, with a 10% chance of a 50 basis point increase by mid-next year.

In Asia, the MSCI's Asia-Pacific index rose 0.2%, contrasting the US market's weakness, and Japan's Nikkei climbed 0.6%. Tech giant SoftBank Group suffered a 3.3% dip in shares after reporting a net loss of $7 billion in the second quarter, primarily due to high costs associated with US data center expansion. South Korea's KOSPI climbed 0.4%, while China's blue chips fell 0.2%.

Nasdaq futures increased by 0.5%, and S&P 500 futures rose 0.2%. European stock futures also gained 0.6%. Nvidia faced a political controversy when its CEO, Jensen Huang, was reportedly targeted by a foreign intelligence operation, causing its shares to drop 5.5%.