PSX Turns Negative on Geopolitical Worries, Rate Hike Fears

The Pakistan Stock Exchange (PSX) closed in negative territory on Friday, with the benchmark KSE-100 Index shedding 352.63 points, or 0.21 per cent, to settle at 167,089.27 points, as selling pressure across key sectors weighed on market sentiment.

According to market data, the benchmark index fluctuated considerably during the session, touching an intraday high of 168,134.12 points before slipping to a low of 166,837.72 points, reflecting persistent volatility in trading.

Trading activity remained substantial, with approximately 309.41 million shares changing hands across the market, while the total traded value stood at around Rs15.44 billion. Market breadth was relatively balanced, as 243 companies advanced, 203 declined and 124 remained unchanged.

Financial analyst Sheheryar Butt told The Karachi Post that although the market opened on a positive note due to the recent drop in oil prices, the 100-Index failed to sustain the level of 168K points.

“The major reason for the selling pressure is geopolitical tension and the domestic political situation. On the other hand, bond yields are rising globally and now it is Pakistan’s turn.” He articulated.

Sheheryar said, amid current situation it is expected that the Monetary Policy Committee of the State Bank of Pakistan may increase the interest rate by fifty basis points.

The benchmark’s marginal decline highlighted continued volatility and cautious investor sentiment at the close of the trading week.