KARACHI: The Pakistan Stock Exchange (PSX) staged a modest recovery on Wednesday as investors resumed buying, encouraged by the formation of a high-level committee to address the business community’s concerns over the recently introduced taxation measures. The development helped the benchmark KSE-100 index partially recover ahead of the July 19 strike call.

Ahsan Mehanti of Arif Habib Corporation said the recovery was driven by expectations of robust financial results and dividend payouts during the ongoing earnings season. Optimism was also bolstered by reports of the finance minister presenting a positive case to Moody’s, showcasing economic improvements as part of Pakistan’s bid for a credit rating upgrade.

Topline Securities reported that the KSE-100 index closed at 136,379.97 points, up 440.10 points or 0.32 per cent. The session remained volatile, with the index touching an intraday high of 137,232 and a low of 135,543, as investors engaged in profit-taking, particularly in the banking sector.

Support came from stocks such as Fauji Fertiliser, Engro Holdings, Engro Fertiliser, Pakistan Services Ltd, and Attock Refinery, which collectively contributed 1,160 points to the index. However, losses in United Bank Ltd, Meezan Bank, and MCB Bank trimmed gains by 443 points.

Ali Najib, Deputy Head of Trading at Arif Habib Ltd, said the market witnessed another day of consolidation, with the index fluctuating throughout the session before settling in positive territory.

The early part of the session saw bearish sentiment, pushing the index to an intraday low of 135,543 points (down 397 points). However, value hunters stepped in at the day’s low, triggering a rebound that led to a positive close.

Investor confidence was reinforced by the finance minister’s briefing to Moody’s, which highlighted falling inflation, monetary easing, a stable rupee, reserves exceeding $14 billion, and improved remittances and exports.

These developments bolstered optimism for a potential ratings upgrade in Moody’s upcoming review.

Despite the index’s upward movement, trading activity declined. Total volume fell by 19.69pc to 705.95 million shares, while the traded value dropped by 16.63pc to Rs32.18bn. Pakistan International Bulk Terminal led the volumes chart with 90.7 million shares changing hands.

Published in Dawn, July 17th, 2025