The Pakistan Stock Exchange (PSX) lost momentum during Wednesday’s trading session, giving up its earlier gains as selling pressure returned and pushed the benchmark KSE-100 Index into negative territory.
At around 3:25pm, the benchmark index stood at 178,983.05, down 352.19 points, or 0.20 percent, from the previous close of 179,335.24.
The decline marked a reversal from earlier trading, when the KSE-100 had climbed more than 800 points to reach 180,148.80 at 1:30pm. The index has since pulled back, touching an intraday low of 178,642 and a high of 180,769.
Trading activity remained strong, with total volume reaching 314.66 million shares by 3:25pm.
Earlier in the session, buying interest was visible in several key sectors, including commercial banks, oil and gas exploration companies and oil marketing companies (OMCs). Index-heavy stocks such as SSGC, PPL, OGDC, MCB, MEBL, NBP and UBL were among those trading higher.
The latest pullback comes a day after the PSX staged a strong rally, with the KSE-100 surging 5,448.56 points, or 3.13 percent, to close at 179,335.24. Investors had responded positively to signs of easing geopolitical tensions following US President Donald Trump’s remarks on peace.
Meanwhile, global markets were dealing with fresh concerns over US inflation and the Federal Reserve’s interest rate outlook.
US core inflation rose 0.3 percent month-on-month in October, exceeding economists’ expectations of 0.2 percent. The latest reading, alongside hawkish comments from several Federal Reserve officials, has raised expectations of further monetary tightening.
Fed Governor Christopher Waller indicated that a 0.3 percent core inflation reading could prompt him to consider a 50-basis-point rate increase in December. Other policymakers also signalled the need for further rate rises, although views differed on their pace.
In Asian markets, shares largely held their ground despite the concerns. MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.2 percent, while Japan’s Nikkei rose 0.6 percent. South Korea’s KOSPI added 0.4 percent, while China’s blue-chip index slipped 0.2 percent.
US and European stock futures also moved higher, with Nasdaq futures gaining 0.5 percent and S&P 500 futures rising 0.2 percent. European stock futures were up 0.6 percent.
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