PSX falls 699 points as war jitters grip market

KSE-100 retreats after a choppy session marked by late selling that wiped out earlier resilience

KARACHI:

Pakistan Stock Exchange (PSX) remained jittery on Wednesday as renewed war fears kept investors cautious, with the KSE-100 index ending the session 698.56 points, or 0.40% lower at 171,943.60.

The benchmark KSE-100 index moved within a broad range during the day, hitting a high of 173,174.19 and falling to a low of 171,801.67. Trading remained largely range-bound through the afternoon, but selling intensified sharply in the final hours, dragging the index further into negative territory by the close.

The market mood was weighed down by the continuing US-Iran conflict, with escalating attacks on military, shipping and energy assets fuelling concerns over wider regional instability and a fresh rise in oil prices. Investors remained wary of the possible economic fallout from prolonged hostilities and disruptions to energy supplies.

After holding its ground for much of the session, the market surrendered its composure in the closing stretch, ending the day on a distinctly weaker note.

According to Ahmed Sheraz of KTrade Securities, the KSE-100 index closed at 171,943 points, down 698 points or 0.40% day-on-day, with approximately 159 million shares traded. 

Read: PSX loses 994 points as ME conflict dents trust

The session remained mixed, with selling pressure primarily witnessed across the commercial banks, cement and fertiliser sectors, keeping the index under pressure.

On the individual stock front, Fauji Fertiliser, MCB Bank, Lucky Cement, Meezan Bank and other selected index-heavy names remained weak, while selective buying provided some support to the broader market.

Looking ahead, investor sentiment is likely to remain cautious amid heightened geopolitical uncertainty, as Brent crude crossed the $100 per barrel mark following an overnight escalation between Iran and the US, while traffic through the Strait of Hormuz remains disrupted. 

The sharp rise in oil prices, coupled with ongoing geopolitical tensions, could continue to weigh on Pakistan’s external account and inflation outlook, keeping the PSX sensitive to further developments in the coming sessions, Sheraz noted. 

Cumulatively, trading volume decreased to 477.6million shares from Tuesday’s total of 722.6million. The value of traded shares stood at Rs22.6billion. In the ready market, shares of 492 companies were traded.

Of these, 162 stocks closed higher, 293 fell and 37 remained unchanged. Cnergyico Pk emerged as the volume topper, with trading in 65.9million shares, losing Rs0.26 to close at Rs13.06.