PSX swings as political uncertainty and oil prices rise

KARACHI: The Pakistan Stock Exchange (PSX) experienced volatile trading on Wednesday as the benchmark index moved between gains and losses amid political uncertainty and rising international oil prices.

At midday, the KSE-100 index stood at 164,807.98 points, up 31.54 points, or 0.02%. During the session, it reached an intraday high of 165,209.05 and fell to a low of 164,060.33, reflecting cautious investor sentiment.

The market opened on a positive note, with the benchmark index climbing to 165,032.13 points by 9:33am, gaining 255.69 points, or 0.16%. However, selling pressure soon erased most of the early gains, pushing the index into negative territory before it recovered slightly.

Investors remained cautious following the imposition of emergency measures and governor’s rule in Khyber Pakhtunkhwa. The political developments added to concerns about the domestic economic outlook and contributed to uncertainty in the market.

Selling was observed across several major sectors, including automobile assemblers, cement, commercial banks, oil and gas exploration companies, power generation, refineries and oil marketing companies.

International oil prices also influenced market sentiment. Crude prices rose on Wednesday after two vessels were reportedly struck in the Strait of Hormuz, while Iranian officials announced new tactics targeting shipping. The developments heightened concerns about energy supplies and risks to maritime trade.

Brent crude futures increased by 34 cents, or 0.3%, to $106.03 per barrel by 0630 GMT. US West Texas Intermediate crude futures rose by 28 cents, or 0.3%, to $94.42 per barrel. Both benchmarks had gained more than $1 earlier in the session.

Market participants continued to monitor domestic political developments and movements in global oil prices for further direction. Persistent uncertainty in both areas kept investors cautious, with the benchmark index struggling to establish a clear trend during the first half of trading.