PSX in recovery mode, gains over 1,100 points
The Pakistan Stock Exchange (PSX) continued its recovery for a second consecutive day on Thursday as the benchmark index rose by more than 1,100 points.
According to the PSX website, the KSE-100 index gained 957.32 points to reach 61,820.94 points at 10:30am, up 1.5 per cent from the previous close of 60,863.62 points. It eventually closed at 62,052.23 after surging 1188.61 points or 1.92pc.
The bulls regained their dominance two days after an all-out rout when the benchmark of representative shares recorded its biggest day-on-day decline. Yesterday, the stocks had regained some of the lost ground amid value-hunting by investors.
Speaking to Dawn.com today, Yousuf M. Farooq, director of research at Chase Securities, observed that the market bounced back sharply during the last two sessions after a correction.
He noted that market participants were expecting interest rates to decline in 2024, coupled with a broad-based rerating of the market.
“More than 125 stocks are trading 70pc below the May 2017 market cap in dollar terms. There is a significant valuation gap between Pakistan and other markets and that should keep foreign investors active,” Farooq added.
Faran Rizvi, head of equity sales at JS Global, said the market recently tested a significant support level at the 58,700 level, and there was an “observed upward correction”.
He cautioned that investors were specifically concerned about the supply-chain bottlenecks rising from the shipping crisis in the Middle East, noting that it had the potential to influence international commodity prices and undo the downward trend of inflation in developing countries.
Mohammed Sohail, chief executive of Topline Securities, attributed the bullish momentum to “adequate amount of futures position being rolled over”.