PSX Declines as KSE-100 Sheds Nearly 700 Points

Selling pressure continued at the Pakistan Stock Exchange (PSX) as negative sentiment prevailed among investors following renewed attacks across ‌the Middle East, with the benchmark KSE-100 Index settling with a loss of nearly 700 points on Wednesday.

The KSE-100 Index opened near the 173,000 level and initially moved higher, reaching an intraday high of 173,174.18. However, the gains did not last. Selling pressure pushed the index down towards the 172,000 level during the morning session. The index briefly recovered but could not maintain the rebound.

Trading remained mostly range-bound during the afternoon. However, selling increased sharply in the final hours, pushing the KSE-100 to an intraday low of 171,801.66.

At the close, the KSE-100 Index settled at 171,943.59, down 698.57 points, or 0.40%.

On Tuesday, the PSX also faced strong selling pressure as rising US-Iran tensions and higher global crude prices led investors to take profits in major sectors. The KSE-100 Index fell 993.92 points, or 0.57%, to close at 172,642.16.

In international markets, Brent crude moved towards $100 per barrel on Wednesday. Rising tensions in the Middle East affected investor sentiment across Asian markets and increased concerns about inflation ahead of key US consumer price data.

Iranian-backed Houthis in Yemen launched attacks on several Saudi cities on Tuesday, bringing the US ally further into the conflict. Meanwhile, US forces reportedly targeted Iranian oil tankers, while Iran struck a US base in Jordan.

Oil prices rose for a fourth consecutive session on Wednesday, gaining more than $1 in early trading.

Brent crude futures increased $1.57 to $99.49 per barrel, the highest level since late June. US West Texas Intermediate crude rose $1.60 to $94.63 per barrel.

Asian stock markets were mixed. Stocks in Sydney fell around 0.3%, Hong Kong’s Hang Seng Index dropped 0.6%, while mainland Chinese blue-chip stocks gained 0.2%.

Some regional markets recovered as chip and AI stocks gained. Japan’s Nikkei rose 0.6% after falling 1.7% on Tuesday. South Korea’s KOSPI gained 1.6%, while Taiwan’s TAIEX increased 0.6%.

The Philadelphia SE semiconductor index rose 1.3% overnight despite losses in all three major US stock indexes.

US S&P 500 futures gained 0.1% after the cash index fell 0.6% on Tuesday.