Just one day after a big sell-off triggered by political instability, shares at the Pakistan Stock Exchange (PSX) made a spectacular comeback on Wednesday, rising more than 4,600 points and recording their highest-ever single-day gain.
The termination of street clashes between PTI demonstrators and law police in Islamabad after a massive operation by the latter allowed for the bourse’s incredible turnaround.
From the previous close of 94,574.16 at 9:43am, the benchmark KSE-100 increased 3275.22 points, or 3.46 percent, to settle at 97,849.38 points. At 98,276.78 points at 1pm, the index had risen 3702.62 points.
The index has risen 4695.09 points, or 4.96 percent, by the end of the trading session to close in on the 100,000 mark at 99,269.25.
Topline Securities CEO Mohammed Sohail stated that when worries about PTI’s protest subsided, the stock was rising on the stock exchange.
Just one day after its biggest decline, he continued, “the KSE-100 Index rebounds sharply, jumping 4,695 points (4.96pc) to close at 99,269 — marking the highest single-day rise.”
“The market is recovering from a sharp correction as the government has successfully dispersed crowds in Islamabad,” said Yousuf M. Farooq, director of research at Chase Securities.
The focus had “shifted back to declining interest rates and earnings growth,” he continued.
In addition to emphasizing that retail investors “should look beyond short-term fluctuations and focus on long-term investment strategies, understanding that they are purchasing shares in well-established Pakistani companies with a track record of gradually growing earnings and payouts,” he said that Meezan Bank opened under some pressure after the State Bank of Pakistan implemented a Minimum Deposit Rate for Islamic banks.
The same opinions were expressed by Awais Ashraf, director of research at AKD Securities. “Rejuvenated investor confidence, supported by improving macroeconomic indicators,” he remarked, referring to the waning political unrest.
He said that the index was still “notably undervalued compared to its historical averages and regional counterparts,” and that “equities are expected to maintain a bullish trend, driven by declining fixed-income yields and subdued commodity prices.”
