KSE-100 rebounds after historic plunge; IMF board meeting adds to investor focus

After declining record 6,500 points on Thursday, the Pakistan Stock Exchange (PSX) regained some ground, with the benchmark KSE-100 Index closing higher by over 3.5% during trading on Friday.

Bullish momentum was observed during the first half of the trading session, pushing the KSE-100 to an intra-day high of 107,541.45.

At close, the benchmark index settled at 107,174.64, up by 3,647.82 points or 3.52%.

“This recovery was on account of optimism on IMF Executive Board meeting scheduled to consider Extended Fund Facility programme, where market expects smooth approval. Overall decline in cross border hostilities also provided stimulus to investor sentiment,” brokerage house Topline Securities said in its post-market report.

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, Topline said.

On a weekly basis, the KSE-100 Index declined by 7.2%.

“This decline was largely on account of escalation of tension between Pakistan and India, where during the week cross border hostilities kept the investors on the edge. During the week individuals and mutual funds (on redemption) largely sold in market this selling was largely absorbed by local institutions - banks, companies, other organisation and insurance sector,” Topline said.

In a key development, the Executive Board of the International Monetary Fund (IMF) is scheduled to meet on Friday (May 9) to consider “Pakistan - first review under the Extended Fund Facility (EFF) programme, request for modification of performance criteria and request for an arrangement under the Resilience and Sustainability Facility.”

The board would consider the first review under the $7 billion EFF programme and a new arrangement of $1.3 billion under the Resilience and Sustainability Facility (RSF). Upon approval from the Executive Board, Pakistan will have access to about $1 billion (SDR 760 million) under the EFF, bringing total disbursements under the program to about $2 billion.

In addition, the country would unlock the $1.3 billion under a new climate resilience loan program spanning 28 months.

On Thursday, selling pressure gripped the PSX, with the KSE-100 Index shedding nearly 6,500 points to settle at 103,526.82 amid rising tensions between Pakistan and India.

Globally, Japanese stocks jumped on Friday, supported by the US dollar’s surge against the yen, after a US trade deal with Britain fuelled hopes of progress in tariff talks with other countries.

Bitcoin soared to its highest since January and US crude ticked up after a more than 3% surge on Thursday, when President Donald Trump announced the agreement with British Prime Minister Keir Starmer - the first in the month since Trump started a 90-day pause on trade tariffs to allow room for negotiations.

At the same time, concerns that the limited trade agreement with London may not provide much of a blueprint for additional deals cooled optimism around the outcome of Sino-U.S. trade talks set for Saturday in Switzerland.

Mainland blue chips started the day 0.2% lower, while Hong Kong’s Hang Seng (.HSI), opens new tab rose 0.2%.

Japan’s Nikkei and broader Topix each climbed about 1.2%, with the Topix set to extend its winning streak to an 11th session, the longest run since October 2017.

Taiwan’s equity benchmark advanced 1%, while Australian stocks added 0.4%.

Meanwhile, the Pakistani rupee declined further against the US dollar, depreciating 0.07% in the inter-bank market on Friday. At close, the local currency settled at 281.71, a loss of Re0.19 against the greenback.

Volume on the all-share index decreased to 516.29 million from 653.55 million recorded in the previous close.

The value of shares declined to Rs28.84 billion from Rs35.44 billion in the previous session.

WorldCall Telecom was the volume leader with 47.09 million shares, followed by Cnergyico PK with 33.59 million shares, and Sui South Gas with 29.29 million shares.

Shares of 441 companies were traded on Friday, of which 300 registered an increase, 99 recorded a fall, while 42 remained unchanged.