The equity market staged a bounce-back on Friday, clawing back some of Thursday’s heavy losses as the geopolitical heat eased and rollover-week positioning helped stabilise trade heading into results season.
The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index settled at 184,174.48 points, up 1836.36 points, or 1.01%, from 182,338.12.
The benchmark index touched a high of 186,619.51, up 4,281.39 points, or 2.35%, before falling to a low of 182,347.47, up 9.35 points, or 0.01%.
"Stocks staged a recovery in the early session at PSX amid institutional support in oversold scrips and investor eye possible US-Iran de-escalation on Iran deal," said Ahsan Mehanti, Managing Director and CEO, Arif Habib Commodities.
He added: "Higher global crude oil prices and speculations in the earnings season played a catalyst role in bullish activity at PSX."
The Pakistan Stock Exchange’s benchmark KSE-100 Index reached an intraday high of 186,619.51, up 4,281.39 points, or 2.35%, and recorded a session low of 182,347.47, up 9.35 points, or 0.01%, against the previous close of 182,338.12.
"Markets found some footing after a steep sell-off, rebounding modestly as geopolitical risk premiums eased across global asset classes," said Huzaifa Riaz, Director, Mayari Securities (Pvt) Limited.
"Sentiment was further supported by the final day of rollover week, allowing investors’ focus to gradually shift back to the upcoming results season,” he added.
Turning down the temperature, US President Donald Trump on Thursday said he hoped to avoid military action against Iran, leaving open the door to talks even as Tehran warned of retaliation and a US naval group loitered in regional waters.
As the White House struck a softer tone on Iran, crude rallied. Brent rose $2.61 (3.8%) to $71.01 a barrel, on track for its biggest monthly gain in four years, while WTI gained $2.54 (4.0%) to $65.75.
Adding to the sentiment, State Bank of Pakistan (SBP) foreign-exchange reserves increased $13 million to $16.101 billion in the week ended January 23. Total liquid reserves rose $35 million to $21.293 billion (commercial banks $5.192 billion, up $22 million).
On Thursday, the KSE-100 slumped 6,042.27 points (-3.21%) to 182,338.12, after swinging between 188,923.40 and 181,961.15.
