PSX surges over 900 points, erases most of previous session’s losses
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Bulls reasserted their dominance on the trading floor of the Pakistan Stock Exchange (PSX) on Tuesday, erasing most of Monday’s losses, with experts attributing this reversal to improved clarity regarding the appointment of a caretaker government among other reasons.
The benchmark KSE-100 index gained 903.76 points, or 1.91 per cent, to close at 48,333.58 points, which was also a intra-day high during the trading session.
A day earlier, the market had experienced a significant sell-off as the benchmark KSE-100 index plummeted by 956 points, equivalent to 1.98 per cent, ultimately closing at 47,429.82 points due to a range of factors.
According to Mohammed Sohail, the CEO of Topline Securities, the market’s response on Tuesday was triggered by reports indicating increased clarity about the new caretaker set-up, alongside the potential approval of the refinery policy by the federal cabinet.
He further stated, “In response to these reports, the market exhibited a positive reaction, recouping its losses. The prevailing momentum and sentiment in the market appear favorable for further progression.”
Ahsan Mehanti, the CEO of Arif Habib Commodities, observed that stocks concluded on a bullish note, attributed to reports concerning the appointment of a caretaker prime minister and the IMF’s approval of a circular debt management plan, accompanied by State-owned Enterprises’ corporate dividends issuance.
He also emphasised that the rupee’s recovery, buoyed by positive economic data reflecting a favourable trade deficit for July 2023, played a significant catalyst role in driving the bullish closing trend.
Raza Jafri, the head of Research at Intermarket Securities, noted that the KSE100 managed to recover nearly all of the losses incurred on the previous day.
He highlighted a surge in buying interest within state-owned oil exploration companies, driven by renewed optimism about the clearance of circular debt.
Moreover, Jafri mentioned a substantial increase in buying activity in the power sector stocks, particularly influenced by Lalpir Power’s significant cash payout of Rs15 per share.
