Stocks rebound: sharp 3.52% gain amid de-escalation hopes

KARACHI: Stocks staged sharp recovery as investor eye de-escalation in Pakistan-India tensions after US appeal for end to violence and IMF board approval disbursement of $1bn under EFF and additional arrangement for $1.3bn under RSF.

KSE 100 Index rebounded today and gained to close at 107,175 level (up by +3.5%) recouping some of the previous day losses (yesterday KSE 100 Index declined to close -6.7% lower).

“SBP policy easing and surge in global crude oil prices played catalyst role in record bullish close at PSX,” Ahsan Mehanti told Hum News English.

After four consecutive days of decline, totaling an 11.2% loss, the market staged a remarkable recovery, surging 3.52% on hopes of easing tensions between the two sides, fueled the recovery, said Mohammad Rizwan Director at Chase Securities.

The recovery was on account of optimism on IMF Executive Board meeting scheduled to consider Extended Fund Facility (EFF) program, where market expects smooth approval. Overall decline in cross border hostilities also provided stimulus to investor sentiment, Topline Securities stated.

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Traded value wise PSO (PKR1.97bn), MARI (PKR1.82bn), OGDC (PKR1.67bn), SNGP (PKR1.63bn), PPL (PKR1.22bn), FFC (PKR1.17bn), UBL (PKR1.14bn), LUCK (PKR1.06bn) and MLCF PA (PKR839mn) dominated the trading activity.

Top positive contribution to the index came from LUCK, MARI, HUBC, HBL, FFC, PPL, OGDC, ENGROH, EFERT and PSO, as they cumulatively contributed +1,923 points.

Traded volume and value for the stood at 513mn shares (down by 21% DoD) and PKR29bn (down