PSX Bounces Back After Intra-Day Losses

The Pakistan Stock Exchange (PSX) saw its KSE-100 Index conclude the week on a positive note, recovering from a significant loss experienced during Friday’s trading session.

Escalating tensions between Pakistan and India, subsequent to the Pahalgam incident, exerted downward pressure on the stock market, driving the KSE-100 Index to an intra-day low of 113,716.60.

However, buyers regained control later in the day, propelling the index into positive territory with support from last-hour acquisitions.

At the closing bell, the KSE-100 Index stood at 115,469.35, reflecting an increase of 449.53 points, or 0.39%.

Leading the positive momentum were HBL, FFC, MEBL, MCB, and NBP, collectively adding +570 points to the index.

Previously, on Thursday, the PSX encountered considerable selling activity, resulting in the KSE-100 Index shedding over 2,200 points.

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

This decrease is tied to geopolitical tensions with India and futures rollover dynamics. During the week, Pakistan finalized a $1 billion loan agreement with two foreign commercial banks at around a 7.6% interest rate. Furthermore, the government intends to secure funding from the domestic market via Pakistan’s inaugural sustainable investment asset-backed Sukuk bonds to finance three clean energy projects, requiring an additional Rs52 billion.

Relations between Pakistan and India have deteriorated, with accusations of cross-border terrorism following an attack on civilians in Indian Illegally Occupied Jammu and Kashmir (IIOJK). Pakistan has refuted these claims.

Both nations implemented retaliatory actions, including India’s suspension of a water-sharing treaty and Pakistan’s airspace closure for Indian airlines.

The United Nations (UN) has urged both India and Pakistan to practice moderation amidst these diplomatic escalations.

The United States, while denouncing the attack in IIOJK’s Pahalgam region, has stated its neutrality concerning the status of Kashmir and Jammu.

Meanwhile, the Pakistan Senate unanimously adopted a resolution on Friday, affirming a firm and immediate response to any misadventure initiated by India.

In global markets, Asian stocks were poised for their second consecutive week of gains, alongside a strengthening dollar, as investors reacted favorably to a perceived shift in the White House’s approach to China.

Alphabet, the parent company of Google, surpassed profit expectations and reaffirmed its AI investment objectives, leading to a surge in its shares and a boost for peers and S&P 500 futures.

On Wall Street, investors brushed off mixed corporate results, resulting in a 2% rise for the S&P 500.

The dollar stabilized against the euro and Japanese yen, following a period of volatility influenced by tariff-related announcements and shifts in U.S. assets.

Trading volume on the all-share index decreased to 471.07 million from the previous close of 506.70 million.

The value of traded shares increased to Rs27.31 billion from Rs24.49 billion in the previous 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 traded companies, 182 experienced gains, 204 recorded losses, and 55 remained unchanged.