PSX Reverses Early Gains as Selling Pressure Drags KSE-100 Into the Red

The benchmark index drops more than 1,500 points as heavy selling in banking, energy, and cement stocks weighs on the market.

Escalating geopolitical tensions and mounting concerns about possible disruptions to global energy supplies dampened investor sentiment at the Pakistan Stock Exchange (PSX) on Thursday. An early advance quickly unraveled under intense selling pressure, pushing the benchmark KSE-100 Index into negative territory.

Data from the PSX showed a strong start to the session, with the KSE-100 Index climbing nearly 1,200 points in early trade to touch an intraday high of 180,310.

The rally lost steam after midday, however, as fresh selling wiped out the gains and pulled the benchmark down to an intraday low of 177,317.80.

By 1:45 pm, the index was trading at 178,148.46, down 935.34 points, or 0.52%, from the previous close.

Losses were widespread across major sectors, with automobile assemblers, cement, commercial banks, oil and gas exploration, oil marketing companies, and power generation all under pressure.

The decline extended a lackluster showing on Wednesday, when late profit-taking erased earlier gains and sent the KSE-100 Index 251.44 points, or 0.14%, lower to close at 179,083.80.

Global equities also fell sharply on Thursday, led by chipmakers and data center operators after Nvidia shares plunged in after-hours trading on reports that its board may replace longtime CEO Jensen Huang.

The 8.8% slide in Nvidia stock during extended trading rippled through Asian markets, pressuring S&P 500 e-mini futures, which were down 0.5%, and sparking broad declines among semiconductor shares.

Taiwan’s benchmark index tumbled 2.6%, while South Korea’s Kospi slipped 0.9%, dragging the MSCI Asia-Pacific ex-Japan index down 1.2%. Japan’s Nikkei 225 shed 0.9%.

In commodities, Brent crude fell 1.0% to $91.87 as fading fears of an escalation of conflict in the Middle East eased the risk premium in oil markets.

Among cryptocurrencies, bitcoin and ether each declined 1%, trading at $73,579.07 and $2,047.27, respectively.

Source link