PSX Bounces Back After Intra-Day Loss

The Pakistan Stock Exchange (PSX) saw its KSE-100 Index conclude the week on a positive note, recovering from a significant drop of over 1,300 points during Friday’s trading session.

Earlier in the day, increased tensions between Pakistan and India after the Pahalgam incident had put pressure on the stock market, driving the KSE-100 Index to a low of 113,716.60.

However, buyers regained control later in the day, pushing the index back into positive territory, supported by purchases in the final trading hours.

The KSE-100 index ultimately closed at 115,469.35, reflecting an increase of 449.53 points, or 0.39%.

According to Topline Securities, HBL, FFC, MEBL, MCB, and NBP were the biggest contributors to the index’s rise, collectively adding +570 points.

On the preceding day, Thursday, the PSX experienced substantial selling pressure, leading to a loss of over 2,200 points for the KSE-100 Index.

On a week-over-week assessment, the KSE-100 experienced a reduction of 1.57%.

Topline noted that the decline could be linked to the cross-border situation with India and the futures rollover week. Additional events during the week included Pakistan’s agreement with two foreign commercial banks for a $1 billion loan at approximately 7.6% interest. Also, the government’s decision to generate debt from the domestic capital market through Pakistan’s first sustainable investment asset-backed Sukuk bonds to fund three clean energy projects, which require an additional Rs52 billion for completion, was noted.

Relations between Pakistan and India deteriorated to a new low, with accusations from New Delhi regarding Islamabad’s support for cross-border terrorism, following an attack on civilians in Indian Illegally Occupied Jammu and Kashmir (IIOJK). Pakistan refuted these claims.

In response, both countries implemented various measures against each other. India suspended a vital river water-sharing treaty, and Pakistan restricted its airspace to Indian airlines.

The United Nations urged both India and Pakistan to exercise restraint, as diplomatic measures were enacted by both sides.

The United States condemned the attack, while maintaining it was not taking a position on the status of Kashmir or Jammu.

Meanwhile, the Pakistan Senate unanimously adopted a resolution stating that any Indian aggression would be met with a strong and immediate response.

Globally, Asian stock markets were poised for a second consecutive week of gains, and the dollar showed its first weekly rise in over a month, as investors reacted favorably to a perceived softening of the White House’s stance on China.

Alphabet, the parent company of Google, exceeded profit expectations and confirmed AI spending plans, causing its shares to jump nearly 5% in after-hours trading, which also boosted peers and S&P 500 futures, which increased 0.5%.

Investors on Wall Street brushed aside mixed corporate earnings reports, resulting in a 2% rise for the S&P 500.

The dollar stabilized around $1.1350 per euro and 143 Japanese yen , with reduced dollar selling in Asia on Friday.

The volume on the all-share index decreased to 471.07 million from 506.70 million in the previous session.

The value of shares traded increased to Rs27.31 billion from Rs24.49 billion in the prior session.

WorldCall Telecom led in volume with 22.80 million shares, followed by Power Cement with 21.96 million shares, and Sui South Gas with 21.57 million shares.

Out of 441 companies whose shares were traded, 182 saw an increase, 204 experienced a decrease, and 55 remained unchanged.