PSX slips in early hours as KSE-100 sheds over 1,300 points

Selling pressure dominated early trade at the Pakistan Stock Exchange (PSX), with the benchmark KSE-100 shedding over 1,300 points on Thursday.

At 10:50am, the benchmark index was hovering at 187,040.22, a decrease of 1,340.16 points or 0.71%.

Selling pressure was seen in key sectors, including automobile assemblers, cement, commercial banks, fertiliser, oil and gas exploration companies, power generation and refinery. Index-heavy stocks, including ARL, HUBCO, OGDC, POL, HBL, MEBL, MCB and UBL, traded in the red.

In a key development, various trade bodies have expressed serious concern over the likely impact of the proposed India–European Union Free Trade Agreement (FTA) on the country’s textile and hosiery exports, warning that it would place Pakistan at a structural disadvantage despite its existing GSP+ status with the EU.

On Wednesday, PSX closed the session marginally higher as select buying in energy, power generation and banking stocks helped benchmark indices end in positive territory, despite persistent volatility and broadly negative market breadth across cash and futures segments.

The benchmark KSE-100 Index rose by 177.53 points, or 0.09%, to close at 188,380.39 points

Internationally, Asia’s runaway stock markets took a breather on Thursday as mixed earnings out of the tech sector ​stirred caution ahead of Apple’s results, while the dollar looked shaky despite verbal support from both US and European officials.

Gold and silver climbed ‌to all-time highs as investors continued their rush into physical assets, and oil prices hit a four-month top as U.S. President Donald Trump warned Iran of possible attacks if it did not make a deal on nuclear weapons.

The US Federal Reserve kept interest rates on hold as widely expected, while Chair Jerome Powell talked of a “clearly improving” economic outlook and broad support on the committee for a pause.

Powell would not be drawn on whether he would remain as a governor after he steps down as Chair in May, given Trump’s efforts ‌to pressure the Fed into more aggressive cuts.

Investors reacted by further paring the chance of another policy easing by April ​to 26%, with June seen as the next likely window at 61%.

This is an intra-day update