Share prices fluctuate at Pakistan Stock Exchange
Pakistan Stock Exchange (PSX) opened a new business week Monday on a negative note amid rising tensions in the Middle East, reported 24NewsHD TV channel.
At 2:06 pm, the benchmark index was hovering at 175,562.85, down by 239.93 points or -0.14%. Earlier, in the day the share prices saw a seesaw situation where the index lost more than 2,000 points, but later the market recovered to some extent.
However, at the close of business, the share prices were able to recover all the losses for the day, with index registering a marginal increase of 124.95 points or 0.07 percent to 175,987.73 points,
Selling was witnessed in key sectors, including automobile assemblers, cement, commercial banks, fertiliser, oil and gas exploration companies, OMCs, and power generation. Index-heavy stocks, including OGDC, MARI, PPL, POL, HUBCO, MCB, MEBL, and NBP, traded in the red.
During the previous week, the PSX remained under heavy selling pressure, as escalating regional geopolitical tensions and a sharp rise in international oil prices undermined investor confidence, extending the market’s losing streak for a second consecutive week.
According to the weekly market review, the benchmark KSE-100 Index declined by 3.5% on a week-on-week basis, shedding 6,438.97 points to close at 175,802.80 points.
Globally, Asian share markets slipped on Monday as the escalating conflict in the Gulf lifted oil prices and fanned fears of inflation, while a packed week of major tech earnings will further test investor faith in the AI trade.
Brent crude climbed above $90 a barrel for the first time in more than a month as the US military started a ninth straight day of attacks against Iran, which in turn struck targets across the region.
Just a handful of ships transited the Strait of Hormuz on Sunday and one was reported to be on fire.
Brent duly added 2.6% to $90.40 a barrel, while U.S. crude rose 2.3% to $84.39.
The jump in fuel costs has revived worries about inflation even as U.S. consumer price data surprised on the downside last week, leading futures markets to price in 29 basis points of Federal Reserve rate hikes by year-end.
Futures imply a 60% chance of a rate rise as early as September, pushing yields on 30-year Treasuries back above the psychological 5.0% barrier. This is a level that tends to attract funds away from equities and toward fixed income, while lifting the valuation bar for future corporate earnings.
Reporter: Kawish Memon