The Pakistan Stock Exchange (PSX) experienced mixed trading on Wednesday, with the KSE-100 Index fluctuating throughout the day before closing marginally higher by 162 points.
Starting the day with negative momentum, the KSE-100 hit an intra-day low of 81,529.45. However, bullish sentiment soon pushed the index to a high of 82,360.29 before late-session selling trimmed gains. At the close, the index settled at 81,967.01, rising by 162.41 points or 0.20%.
According to Topline Securities, the session’s volatility, driven by geopolitical tensions in the Middle East, caused the index to fluctuate between its peaks and lows. Key contributors to the index’s gain included UBL, FFC, MCB, ENGRO, and PKGP, which collectively added 270 points.
The geopolitical unrest stemmed from Iran’s missile attack on Israel, which Iran declared finished barring further provocation. Meanwhile, Israel and the US vowed retaliation, raising concerns about a wider conflict.
In economic news, Pakistan’s trade deficit widened slightly to $5.4 billion during the first three months of fiscal year 2024-25, an increase of 4.2% from the previous year, according to data from the Pakistan Bureau of Statistics.
On Tuesday, positive buying momentum helped the KSE-100 rise by 690 points, spurred by expectations of a further reduction in the policy rate.
Globally, Asian markets followed Wall Street’s decline as Iran’s missile strike on Israel fueled fears of regional conflict, while oil prices climbed due to concerns over supply disruptions. Asian stocks saw declines, with Japan’s Nikkei dropping 1.5%, South Korea’s KOSPI falling 1.3%, and Australia’s benchmark losing 0.3%. MSCI’s Asia-Pacific index slipped 0.5%, and the US dollar strengthened, buoyed by macroeconomic trends, while gold hovered near all-time highs.
In the currency market, the Pakistani rupee remained stable, appreciating 0.02% to close at 277.64 against the US dollar.
Trading volume on the all-share index slightly increased to 360.99 million shares from 359.08 million on Tuesday, although the value of traded shares declined to Rs15.39 billion from Rs17.16 billion. Agha Steel Industries led the volume chart with 30.83 million shares, followed by WorldCall Telecom and Fauji Cement with 26.47 million and 20.04 million shares, respectively. Out of 448 companies traded, 164 saw gains, 221 declined, and 63 remained unchanged.
