KARACHI: After experiencing an unprecedented bloodbath overnight, the Pakistan Stock Exchange (PSX) on Friday resisted further decline and staged a strong recovery thanks to no-escalation in the geopolitical tensions, triggering value-buying across all sectors, though the trading volume fell considerably.

Ahsan Mehanti of Arif Habib Corporation said the stocks staged a sharp recovery as investors eye the easing of border tensions between the two nuclear-armed neighbors after the US appeal for an end to violence.

Topline Securities Ltd said the benchmark KSE 100 index rebounded 3,647.82 points or 3.5 per cent to close at 107,174.64 day-on-day, partially reco­uping some overnight los­s­­es. The index plunged by an unprecedented 6,482 po­­­ints or 5.89pc on Thu­rs­day after drone attacks.

This recovery was due to optimism about the exp­ec­ted favourable decision at the IMF board meeting to approve the second tranche.

The overall decline in cross-border hostilities also stimulated investor sentiment. The top positive contribution to the index came from Lucky Cement, Mari Energies, Hub Power, Habib Bank, Fauji Fertiliser, Pakistan Petroleum, Oil and Gas Development Company Ltd, Engro Holdings, Engro Fertiliser, and PSO, cumulatively contributed 1,923 points.

Ali Najib, Head of Sales at Insight Securities, said the market had a roller-coaster session. The index witnessed massive volatility as it gained over 2,400 points in early trading and then went down 1,106 points. The index again rallied and surged 4,015 points intraday.

“Most of the volatility was witnessed in the first session as market momentum floated on the mercy of value hunters and panic sellers’ actions, with mainstream media busy with telecasting and warmongering,” he observed.

However, he added that the second session had a different story to tell where the market sailed smoothly in the north direction under the influence of strong bullish momentum courtesy of better remittances number of $3.18bn for April and ahead of IMF board meeting later in the day to nod Pakistan’s first review under the $7bn EFF which will unleash a tranche of $1.1bn and an additional arrangement for $1.3bn under the Resilience and Sustainability Facility (RSF).

However, the market activity was low as the trading volume plunged 21pc to 516.29 million shares, and the traded value dipped 18.61pc to Rs28.84 billion day-on-day.

Published in Dawn, May 10th, 2025