Volatility at PSX, KSE-100 sheds nearly 500 points
A volatile session was observed at the Pakistan Stock Exchange (PSX), with the benchmark KSE-100 Index swinging both ways, settling lower by nearly 500 points on Thursday.
Trading at the bourse began on a positive note, with the benchmark KSE-100 Index hitting an intra-day high of 121,745.30. However, selling pressure propelled by rising regional tensions dragged the benchmark index to an intra-day low of 119,770.03.
At close, the benchmark index settled at 120,002.59 level, a decrease of 463.34 points or 0.38%.
In a key development, United States President Donald Trump on Wednesday said that he was 'honoured' to meet Field Marshal Syed Asim Munir for talks at the White House — also marking the first time a US president has hosted army chief at the White House unaccompanied by senior civilian officials.
The lunch is being seen in Islamabad as a major diplomatic win, particularly because earlier this month, an Indian delegation met US Vice President JD Vance and Indian media depicted it as a diplomatic success, contrasting it with the apparent inability of the Pakistani delegation to secure a similar meeting.
Moreover, the Federal Reserve held interest rates steady on Wednesday and policymakers signalled borrowing costs are still likely to fall this year, but slowed the overall pace of expected future rate cuts in the face of estimated higher inflation flowing from the Trump administration's tariff plans.
On Wednesday, bearish sentiments prevailed at the PSX, with the benchmark KSE-100 Index settling at 120,465.93, amid a loss of 1,505.11 points.
Internationally, stock markets in Asia edged lower on Thursday while safe havens such as gold and the Japanese yen gained as investors remained on edge over the possible entry of the United States into the week-old Israel-Iran air war.
President Donald Trump kept the world guessing about whether the United States will join Israel's bombardment of Iranian nuclear sites, telling reporters outside the White House on Thursday, 'I may do it. I may not do it.'
The Wall Street Journal said Trump had told senior aides he approved attack plans on Iran but was holding off on giving the final order to see if Tehran would abandon its nuclear programme.
Japan's Nikkei sank 0.8%, with additional downward pressure stemming from a stronger yen, which reduces the value of overseas revenues for the country's heavyweight exporters.
Taiwan's stock benchmark slid 0.9%, and Hong Kong's Hang Seng declined 0.8%.
US S&P 500 futures pointed 0.4% lower, although most US markets - including Wall Street and the Treasury market - are closed on Thursday for a national holiday.
Brent crude edged down to $76.32 per barrel, but remained not far from the 4-1/2-month peak of $78.50 reached on Friday.
The yen gained 0.2% to 144.92 per dollar, while the US currency itself was also in demand as a haven, gaining 0.1% to $1.1472 per euro and 0.2% to $1.3398 versus sterling.
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