The Pakistan Stock Exchange (PSX) witnessed a shift from bullish sentiment to selling pressure, with the benchmark KSE-100 index plunging over 800 points to settle below the 80,000 mark.
By 3:30pm, the KSE-100 index stood at 79,841.55, marking a day-on-day decline of 830.51 points or 1.03%. Key sectors such as cement, commercial banks, engineering, fertilizers, oil and gas exploration companies, OMCs, and refinery sectors experienced significant selling activity.
Several index-heavy stocks including OGDC, POL, PPL, PSO, HBL, MEBL, and NBP ended the day in negative territory.
The recent bullish trend in Pakistan’s stocks was driven by the absence of new capital market taxes in the budget and hopes for a renewed agreement with the International Monetary Fund (IMF), which bolstered confidence in economic stability.
Prime Minister Shahab Sharif’s announcement of a Rs50-billion energy subsidy package for low-income households, consuming less than 200 units of electricity, also influenced market sentiment. The subsidy aims to provide relief over the next three months—July, August, and September—anticipating reduced electricity usage as temperatures cool down in October.
On Tuesday, the PSX had achieved a milestone by briefly surpassing 81,000 points, closing the session 106 points higher.
In global markets, Asian stocks remained near two-year highs, driven by expectations of imminent US interest rate cuts. Meanwhile, the New Zealand dollar weakened after signals from its central bank that inflation was stabilizing.
MSCI’s Asia-Pacific index, excluding Japan, edged up 0.09%, maintaining levels close to its recent peak.
The global rally in stocks has been fueled by growing anticipation of a Federal Reserve easing cycle, anticipated to begin in September, following remarks by Fed Chair Jerome Powell indicating a moderation in US economic conditions.
