The actions in the Pakistan Stock Exchange (PSX) recovered almost 4,000 points on Friday after the index suffered its largest fall one day before, causing losses due to the sum of the loss of RS820 billion for capital investors after the attacks of Indian drones in the main cities throughout the country.
The reference KSE-100 index rose 799.65, or 0.77 percent, to stop at 104,326.46 from the previous closure of 103,526.81 at 11:06 am
At 4:31 pm, the index recovered 3647.82, or 3.52pc, to stand at 107,174.63 since the last closure.
Mohammed Sohail, executive director of Topine Securities, said that after falling abruptly at 6 percent yesterday, the actions had recovered.
“Until now, there has been no news of an important escalation to help restore trust,” he said.
Yousuf M. Farooq, research director of Chase Securities, said: “The actions in the PSX remained volatile today, opening higher as the participants increasingly taken into account that a total war with India is unlikely.
“Some investors have begun to accumulate actions that are negotiated with very attractive assessments after the strong reduction during the past week,” he added.
“Technical analysts also pointed out this morning that the market had entered over -sale territory,” Farooq said.
In yesterday’s decline, he declared that it was mainly “promoted by individuals who unwinds leverage and reimbursements of mutual funds.”
“Such corrections and short -term volatility are a normal characteristic of capital markets,” he said, added that they continued “informing that only long -term investors participate in the market, maintaining discipline during periods of uncertainty and gradually developing their portfolios over time.”
“Market attention now remains in developments in the tensions of Pakistan-India and the meeting of the IMF Board scheduled for today, where Pakistan’s next section will be considered,” he said.
Sana Tawfik, Chief of Research of Arif Habib Limited, said that the main reason behind the recovery was the optimism of investors regarding the meeting of the International Monetary Fund (IMF) today.
“Most likely, the Executive Board approves the section today,” he said.
The fund will meet today to approve the immediate disbursement of approximately $ 1 billion to Pakistan under the installation of extended funds in progress and allow an additional agreement for the resilience and sustainability center of $ 1.3 billion (RSF).
In addition, he stressed that the market now provided “attractive valuations” due to yesterday’s fall.
“Finally, fears of an important escalation have been placed because there is no important development on that forehead,” he added.
Awais Ashraf, the investigation of the director of AKD Securities, said that the “panic triggered by yesterday’s drone attacks from the Indian side is decreasing, since Pakistan’s armed forces demonstrated the ability to intercept threats have reassured investors.”
“The recent market correction after the appearance of climbing has presented investors a valuable opportunity to build their portfolios with more attractive valuations,” he added.
The market capital had lost the value of RS1.3 billion in the three previous sessions, since nerve investors preferred to get the market in the midst of the growing uncertainty about the economic perspective as geopolitical tensions became a military confrontation after India reached three cities with missiles in the early hours of Wednesday, marking more than 31 innocent civilians. Pakistan’s armed forces responded with the fall of five Indian combat planes.
The market accident followed the alarming geopolitical developments after the CEO of the ISPR, Lieutenant General Ahmed Sharif Chaudhry, announced that the Pakistani forces had neutralized 25 drones sent by India since last night. He also confirmed that four army staff were injured after a drone managed to partially achieve a military objective, although the majority was intercepted.
More to follow
