Selling continues, KSE-100 sheds nearly 800 points

Selling pressure continued at the Pakistan Stock Exchange (PSX), with the benchmark KSE-100 shedding nearly 800 points during the opening hours of trading on Wednesday.

Equities opened on a positive note, then gradually dipped as trading progressed.

At 11am, the benchmark index was hovering at 160,910.54, down 781.95 points, or 0.48%.

Selling was observed in key sectors including automobile assemblers, cement, commercial banks, oil and gas exploration companies, OMCs, power generation and refinery. Index-heavy stocks, including ARL, HUBCO, MARI, OGDC, POL, PPL, PSO, SNGPL, SSGC, MCB, NBP and UBL, traded in the red.

On Tuesday, PSX closed lower as profit-taking in major index-heavy sectors dragged the market into negative territory, even as overall trading activity strengthened. The benchmark KSE-100 Index lost 291.59 points, or 0.18%, to settle at 161,692.49.

Globally, Asian stocks rose on Wednesday, chasing gains on Wall Street as weaker-than-expected economic data spurred expectations that the Federal Reserve will cut interest rates at its policy meeting next month.

MSCI’s broadest index of Asia-Pacific shares outside Japan was up 1%, after US stocks ended the previous session with mild gains. Japan’s Nikkei stock index tacked on 1.8%, while US stock futures edged up 0.2%.

US stocks reclaimed lost ground after a selloff earlier this month, with the S&P 500 and Nasdaq Composite rising for a third consecutive day on Tuesday after data showed retail sales rose less than expected and consumer confidence weakened, firming up expectations that the Fed will ease policy soon.

Fed funds futures are pricing an implied 80.7% probability of a 25-basis-point cut at the US central bank’s next meeting on December 10, compared to even odds a week ago, according to the CME Group’s FedWatch tool.

This is an intra-day update