PSX: volatility at bourse, KSE-100 trades marginally higher

The Pakistan Stock Exchange (PSX) experienced fluctuations during the opening hours of trading on Friday, with the KSE-100 Index trading slightly higher. By 10am, the benchmark index stood at 177,506.80, up 133.04 points or 0.08%. Buying activity was noted in sectors such as commercial banks, oil and gas exploration companies, OMCs, and refineries.

Notable index constituents like ARL, PRL, MARI, POL, PSO, SSGC, HBL, MCB, NBP, and UBL traded in the positive territory. On Thursday, the PSX witnessed volatility as the market reversed early gains and closed sharply lower, following renewed selling pressure after midday. This was driven by investor caution over domestic political uncertainty.

The KSE-100 Index fell by 1,710.04 points, or 0.95%, closing at 177,373.76 points. Globally, stocks in Asia showed steadier performance on Friday, after a tumultuous week marred by revelations of extramarital affairs involving Nvidia CEO Jensen Huang, which ultimately led to his resignation. This development, coupled with the 2-year US Treasury yield reaching a one-month high, pushed the dollar higher as investors grappled with the potential for a substantial 50-basis-point rate increase by the Federal Reserve the following month.

Huang's exit could have significant implications for US chip export policy and the AI industry supply chain, considering his efforts to maintain access to the Chinese market and his close relationship with US President Donald Trump. Nvidia shares declined by 3% in extended trading, while those of its customers, including South Korea's Naver, continued to decline on Friday, with Naver dropping 2.75%.

Indices such as MSCI's broadest Asia-Pacific share index outside Japan edged up by 0.26%, reversing some of its 1.3% decline from the previous session. South Korea's Kospi rose by 2.35%, while Japan's Nikkei added 1.4%. This recovery in global equities also followed the market turmoil of the previous week, triggered by Republicans' electoral setback, which raised concerns about tighter regulation potentially hindering the AI infrastructure development that has propelled stocks to record highs this year.

Nasdaq futures and S&P 500 futures rose by more than 0.2%, while EUROSTOXX 50 futures slipped by 0.37%.