Selling grips PSX, KSE-100 down nearly 2,000 points

Selling pressure was observed at the Pakistan Stock Exchange (PSX) after fresh attacks in the Middle East shattered the relative calm of recent days in the US-Iran war, with the benchmark KSE-100 Index shedding nearly 2, 000 points during the trading session on Wednesday. At 11: 40am, the benchmark index was hovering at 175, 637. 55, down by 1, 986. 33 points or 1. 12%. Selling was seen in key sectors, including automobile assemblers, cement, chemical, commercial banks, oil and gas exploration companies, OMCs and power generation. Index-heavy stocks, including HUBCO, MARI, OGDC, PPL, POL, PSO, WAFI, MCB, MEBL and UBL, traded in the red. On Tuesday, PSX closed lower as investors resorted to profit-taking after Monday’s sharp rally, erasing early gains despite strong buying interest in refinery stocks following reports of policy support for the sector. The benchmark KSE-100 Index declined by 638. 45 points, or 0. 36%, to settle at 177, 623. 88 points. Internationally, Asian stocks rebounded on Wednesday after a brutal selloff a day earlier as ​anxiety about valuations, rising competition and AI spending rocked markets ahead of crucial earnings from big tech firms and a Federal Reserve policy ‌decision. Asian chipmakers have been at the epicentre of this year’s AI-driven rally and, more recently, investor concerns about its staying power, sparking sharp market swings. But strong earnings from SK ​Hynix helped calm some of those fears. South Korea’s KOSPI gained over 1% in early trading after sinking more than 10% to a three-month ​low on Tuesday. Shares of SK Hynix rose 2% after the chipmaker posted a more than sixfold increase in quarterly operating ⁠profit but missed lofty expectations. MSCI’s broadest index ​of Asia-Pacific shares outside Japan was 0. 8% higher after shedding 3. 6% on Tuesday and remains on course for a monthly drop of 6. 6%. Japan’s Nikkei gained 1% ​but is bracing for a 10% drop in July. Earnings from “Magnificent Seven” members Microsoft and Meta later in the day will be a key test of the AI trade, particularly after Alphabet and Tesla spooked investors last week with negative cash flow reports. This is an intraday update

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