Selling continues, KSE-100 sheds over 1,300 points in intraday trade

Negative sentiment was observed at the Pakistan Stock Exchange (PSX), with the benchmark KSE-100 Index shedding over 1,300 points during the intra-day trading on Wednesday.

At 12:30pm, the benchmark index was hovering at 166,313.22, a decrease of 1,329.05 points or 0.79%.

Selling pressure was seen in key sectors, including automobile assemblers, cement, commercial banks, fertiliser, oil and gas exploration companies, OMCs, and power generation. Index-heavy stocks, including HUBCO, MARI, OGDC, POL, PPL, PSO, SNGPL, HBL, MEBL and NBP, traded in the red.

On Tuesday, PSX witnessed a broadly negative trading session, with major indices, sectoral benchmarks, and futures contracts closing lower amid persistent profit-taking. The benchmark KSE-100 Index fell 419.92 points to close at 167,642.28, down 0.25%.

Internationally, Asian shares were on a steadier footing on Wednesday, helped by an overnight rebound on Wall Street as a brief selloff in global bond markets and cryptocurrencies abated.

Bitcoin reclaimed the $90,000 level while Nasdaq and S&P 500 futures rose 0.1% each.

MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.3% while Japan’s Nikkei advanced 0.8%.

Calm was restored to markets on Wednesday after an ugly start to the week, where expectations of a looming rate hike in Japan triggered a global bond selloff and exacerbated a slide in cryptocurrencies, leaving stocks caught in the rush from risk assets.

Given the lack of major market catalysts for now, analysts said the focus also shifted back to an expected rate cut from the Federal Reserve next week, which has improved market sentiment.

December has historically been a good month for stocks.

Investors have also been pricing in a more dovish Fed outlook, on the view that White House economic adviser Kevin Hassett, reportedly the frontrunner to become the next chair, would deliver further rate cuts once he succeeds Jerome Powell.

This is an intra-day update