After a historic selloff that saw the Pakistan Stock Exchange (PSX) lose nearly 5,000 points in a single day, the market showed signs of recovery on Friday with the benchmark KSE-100 index rising by over 3300 points during intra-day trading.
By the closing bell, the KSE-100 had gained 3,238 points, up by 3.05%, at 109,513.14 points. The short-term volatility comes from investors trying to cash in on an over-correction.
At 11:45 AM, the KSE-100 index stood at 107,146.69 points, up 872 points or 0.82% from the previous session’s close. The rise was driven by buying interest in key sectors, including cement, commercial banks, and chemicals, while oil and gas exploration companies, OMCs, refineries, and power generation stocks faced selling pressure.
Index-heavy stocks like MCB, MEBL, NBP, UBL, and HUBCO showed strong gains, while energy sector stocks such as MARI, OGDC, PPL, SSGC, and SNGP remained under pressure, trading in the red.
The day started off by trading in the red as at around 9:50, the KSE-100 stood hat 105,601 points down by almost 0.6%.
“The recent market pullback has created attractive entry points for investors looking to capitalize on the dip in equities,” noted Intermarket Securities in a market update on Friday.
On Thursday, the PSX had witnessed a massive decline, with the KSE-100 index tumbling by 4,795 points to close at 106,247.97. The steep drop was attributed to investor concerns over a proposed tax amendment bill, which includes increased restrictions on non-filers in sectors like real estate, equities, and auto purchases. The news led to widespread selling, pushing the market into a correction phase.
