Index touched an intra-day high of 169,687.29 points and a low of 167,329.34 points during the session
A stock broker reacts while monitoring the market on the electronic board displaying share prices during trading session at the Pakistan Stock Exchange, in Karachi on July 3, 2023. Photo: Reuters/ File
KARACHI:
Pakistan equities witnessed a volatile session on Wednesday as early optimism at the Pakistan Stock Exchange (PSX) gave way to selling pressure amid rising geopolitical concerns.
The benchmark KSE-100 index opened on a positive note and displayed resilience during early trading hours, but the market later turned bearish and largely directionless as investors remained cautious amid persistent geopolitical uncertainty and elevated international oil prices.
Some buying activity was observed in key sectors, including automobile assemblers, cement, commercial banks, oil and gas exploration companies, OMCs, power generation and refinery stocks.
The initial rally was largely driven by the State Bank of Pakistan’s announcement that it had received $1.3 billion from the International Monetary Fund (IMF) under the Extended Fund Facility (EFF) and Resilience and Sustainability Facility (RSF) programmes, boosting investor confidence.
However, the momentum proved short-lived as geopolitical jitters dampened market sentiment, prompting investors to resort to profit-taking and offloading positions.
The benchmark KSE-100 index touched an intra-day high of 169,687.29 points and a low of 167,329.34 points during the session. By the close of trading, the index had declined by 1,465.09 points, or 0.87%, to settle at 167,451.14 points.
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Ahmed Sheraz, equity trader at KTrade Securities, observed that the KSE-100 index closed at 167,451 points, down 1,465 points (-0.87% DoD), in a mixed and largely directionless session as investors remained cautious amid persistent geopolitical uncertainty and elevated international oil prices. Volumes on benchmark KSE-100 stayed muted at 208 million shares, reflecting weak participation and lack of conviction across the market.
Broader market momentum remained subdued throughout the session. Despite oil hovering near the $107-109/bbl range during trading hours, the absence of any major geopolitical escalation or diplomatic breakthrough kept sentiment uncertain and range-bound.
Selling pressure was mainly witnessed in heavyweight names, including Habib Bank, United Bank, Bank Al Habib, Lucky Cement, and Hub Power, which collectively dragged the index lower. Commercial banks, technology, and cement sectors largely closed in the red as investors preferred cautious positioning amid the uncertain macro and geopolitical backdrop.
The session lacked a strong trigger from either the news flow, fundamentals, or technical side, resulting in confused and indecisive trading activity for most of the day. Market participants largely stayed defensive while awaiting clarity on regional developments and the Iran-US situation.
Going forward, Sheraz believed the focus should remain centred on geopolitical headlines, particularly developments surrounding Donald Trump’s China visit and broader regional security dynamics. Until clearer direction emerges, range-bound and headline-driven activity is likely to persist in the near term.
During the day, volume of traded shares dropped to 684.9million from Tuesday’s total of 1billion as value stood at Rs21billion. Shares of 483 companies were traded. Of these, 149 climbed, 298 fell, and 36 remained unchanged. Agha Steel was the volume leader with trading in 58.7million shares, gaining Rs 0.43 to close at Rs 8.70.