Broad-based buying in cement, banks and E&Ps lifts index 3.39% amid cautious outlook
A stock broker reacts while monitoring the market on the electronic board displaying share prices during trading session at the Pakistan Stock Exchange, in Karachi on July 3, 2023. Photo: Reuters/ File
KARACHI:
A day after witnessing a massive selloff, buying momentum returned to the Pakistan Stock Exchange (PSX) on Tuesday, bringing relative calm to the market. The benchmark KSE-100 Index surged more than 5,100 points during intra-day trading.
The index touched an intraday high of 158,217.01 and a low of 151,258.85 before settling at 157,132.09, up 5,159.10 points, or 3.39%.
The strong recovery followed Monday’s bloodbath, as investors re-entered the market amid improved sentiment and value buying at attractive levels.
Buying activity was observed across key sectors, including cement, commercial banks, fertilisers, exploration and production, oil marketing companies and power generation. The broad-based gains helped restore confidence after the previous session’s steep decline.
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Market participants said a sense of calm prevailed throughout the trading session, with reduced panic selling and renewed investor interest driving the rebound. However, analysts cautioned that volatility may persist in the near term, depending on external developments and overall market sentiment.
“KSE-100 rebounded today following Monday’s sharp slide, which was triggered by mutual fund redemptions amid shaky investor sentiments,” JS Global Head of Research Waqas Ghani told The Express Tribune.
Additionally, widespread value buying in blue-chip stocks underpinned the day’s rally, as investors stepped in to capitalise on attractive valuations after the previous session’s sharp decline.
However, any further escalation in geopolitical tensions could cap the upside and keep investor sentiment guarded in the coming sessions, he added.
