KSE-100 Index gains 1% as PSX rebounds sharply after rout

Buying returned at the Pakistan Stock Exchange (PSX) after a day of massive selling pressure, with the benchmark KSE-100 Index closing with a gain of over 1,800 points on Friday.

Buying momentum was observed throughout the trading session, pushing the benchmark index to an intra-day high of 186,619.51

At close, the benchmark index settled at 184,174.48, an increase of 1,836.36 points or 1.01%.

Top positive contribution to the index came from ENGROH, LUCK, UBL, MEBL, MARI and HBL, as they cumulatively contributed 1,197 points to the index, Topline Securities said in its post-market report.

Traded value wise FFC, PPL, OGDC, NBP, and PTC dominated the trading activity, it added.

“Investor interest was observed in the textile sector in second half of trading session on news that Prime Minister Shahbaz Sharif has announced reduction in Export Finance Scheme rate by 300bps to 4.5%,” it said.

Arif Habib Limited said market sentiment had improved on positive geopolitical developments, with official statements from both the US and Iran signaling willingness to engage in dialogue and avoid escalation.

“Further support came from the prime minister’s announcements, including a Rs4.04/kWh reduction in power tariffs for industries, a Rs9.0/kWh cut in wheeling charges, and a reduction in the Export Refinance Scheme rate to policy rate minus 6% from minus 3% earlier, providing much-needed relief to the industrial and export sectors,” it said.

On Thursday, PSX suffered a steep and broad-based sell-off as intense selling pressure across heavyweight stocks pushed benchmark indices sharply lower and erased recent gains. Investor sentiment deteriorated rapidly amid disappointment over key corporate earnings, unwinding of speculative positions and widespread profit-taking. The benchmark KSE-100 Index plunged by 6,042.27 points, or 3.21%, to close at 182,338.12 points.

Internationally, stocks were volatile in early Asian trading on Friday after US President Donald Trump ​endorsed a bipartisan deal to avert a fresh government shutdown and said he has decided who he will nominate to lead the ‌Federal Reserve.

MSCI’s broadest index of Asia-Pacific shares outside Japan fluctuated between gains and losses and was recently down 0.2%, extending the previous day’s declines as it headed for its best monthly performance in more than three years.

S&P 500 e-mini futures slid 0.4%, and Nasdaq e-mini futures were off 0.5%, while precious metals were choppy after a flash crash.

On Thursday, Wall Street stocks fell ​after lacklustre earnings from Microsoft raised fears about whether its bets on artificial intelligence would pay off. The S&P 500 closed down 0.1%, and the Nasdaq Composite tumbled 0.7%.

With just under a third of S&P 500 companies having reported, 76% of companies have beaten earnings estimates. But earnings season has thus far been a mixed bag for the major U.S. tech firms that dominate the index.

Meanwhile, the Pakistani rupee secured further gains against the US dollar, appreciating 0.01% in the inter-bank market on Friday. At close, the local currency settled at 279.77, a gain of Re0.03 against the greenback.

Volume on the all-share index decreased to 805.14 million from 933.10 million recorded in the previous close. The value of shares declined to Rs50.83 billion from Rs66.41 billion in the previous session.

K-Electric Ltd was the volume leader with 81.41 million shares, followed by Hascol Petrol with 66.47 million shares, and WorldCall Telecom with 53.71 million shares.

Shares of 484 companies were traded on Friday, of which 258 registered an increase, 175 recorded a fall, and 51 remained unchanged.