After observing massive selling pressure in the previous session, the Pakistan Stock Exchange (PSX) saw a return of positive sentiments with the benchmark KSE-100 Index gaining nearly 1,000 points on Friday.
The benchmark index started the day on a positive note, rising to a high of 174,148, but then fell sharply to an intraday low of 169,592.52 as some traders took profits.
However, the market recovered gradually with a mix of buying and selling. By midday, the index rose again and settled at 173,169.71, following a gain of 999.42 points or 0.58%.
“Some respite was observed on the last trading session of the week, as investors came in to accumulate positions at attractive valuations after the recent market decline,” said Topline Securities in a note.
Top positive contributions to the index came from OGDC, MLCF, PPL, SYS and FFC, as they cumulatively contributed 654 points to the index, added the brokerage house.
In a key development, the International Monetary Fund (IMF) lauded Pakistan’s reform efforts under its programme, saying that the reforms have helped stabilise the economy and rebuild confidence, citing improved fiscal discipline and stronger external accounts.
On Thursday, the PSX witnessed a sharp reversal as widespread selling pressure across key sectors dragged benchmark indices significantly lower, erasing the strong gains recorded in the previous session and reflecting heightened volatility in the market. The benchmark KSE-100 Index closed at 172,170.29 points, registering a steep decline of 6,682.81 points or 3.74%.
Internationally, stocks fell in Asia on Friday, the dollar headed for its largest weekly gain in four months, and oil prices were rising as a US military build-up in the Middle East, and a rout in private equity stocks sent ripples of nerves across markets.
Japan’s Nikkei dropped 1%. Hong Kong’s Hang Seng slipped 0.3% on return from the Lunar New Year break.
Overnight on Wall Street, listed private equity stocks took a beating after one manager, Blue Owl, sold assets and permanently stopped quarterly redemptions from one of its funds, stoking wider concerns about valuations and liquidity in the sector.
Blue Owl stock finished about 6% lower, and shares in larger rivals Apollo Global Management and Blackstone fell more than 5%.
Walmart shares fell about 1.4% after new CEO John Furner offered a cautious outlook on the U.S. consumer.
Meanwhile, the Pakistani rupee registered a marginal gain against the US dollar in the inter-bank market on Friday. At close, the local currency settled at 279.56, a gain of Re0.01 against the greenback.
Volume on the all-share index declined to 537.64 million from 542.98 million recorded in the previous close.
The value of shares decreased to Rs23.79 billion from Rs27.36 billion in the previous session.
K-Electric Ltd was the volume leader with 73.13 million shares, followed by WorldCall Telecom with 46.21 million shares, and B.O.Punjab with 31.62 million shares.
Shares of 475 companies were traded on Friday, of which 158 registered an increase, 257 recorded a fall, and 60 remained unchanged.
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