PSX rebound amid US intervention to ease tensions in region

KARACHI: The Pakistan Stock Exchange (PSX) on Friday rebounded after remaining under pressure for two consecutive trading sessions.

The KSE-100 Index gained 2,747 points or (2.50%) closing at 114,114 level.

“The recovery in the market can be attributed to statements by the US Administration indicating that they are working to ensure that tensions between India and Pakistan do not escalate into a broader regional conflict,” Topline Securities stated.

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Top positive contributions to the Index came from UBL, EFERT, HUBC, LUCK, MEBL, and HBL, as they cumulatively contributed +1,238 points to the Index.

Traded value wise LUCK (Rs 1.53 billion), SNGP (Rs 1.39 billion), DGCK (Rs 1.26 billion), MARI (Rs 1.02 billion), and UBL (Rs 978 million) dominated the trading activity.

Traded value and volume for the day stood at 371 million shares and PKR. 23.27 billion respectively.

SSGC was today’s volume leader with 29.3 million shares.

The KSE-100 Index declined 1.17% on WoW basis, which can be attributed to regional geopolitical tensions between India and Pakistan after an attack last week in Indian occupied Jammu and Kashmir.

Apart from it, this week was dominated with March quarter result announcements which were largely lower than market expectation, which also weighed down on investor sentiment.

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Other development during the outgoing week were, T-Bill auction held during the week in which participation of Rs 1,505 billion was seen with government raising Rs 562 billion as against target of Rs 400 billion an maturity of Rs 698 billion yields largely remains unchanged except for 1-month where yield decreased by 17 bps to 12.149%, the Topline Securities added.

Investor participation declined during the week as average daily traded volume and value during the outgoing week stood at 424 million shares (down by 29% WoW) and PKR 27.5 billion (down by 6% WoW) respectively.