Positive momentum returned at the Pakistan Stock Exchange (PSX), with the benchmark KSE-100 Index gaining over 1,100 points during intra-day trading on Tuesday.
At 2:35pm, the benchmark index was hovering at 112,882.26 level, an increase of 1,138.73 points or 1.02%.
Buying was observed in key sectors including commercial banks, oil and gas exploration companies, OMCs, refineries and automobiles. Index-heavy stocks including HBL, NBP, MARI, OGDC, POL, SHEL and SNGPL traded in the green.
“With no major triggers in sight, the market is expected to remain range bound over the next few weeks, with potential improvement once the International Monetary Fund (IMF) review is completed in March,” said Intermarket Securities in a note on Tuesday.
“We continue to believe the market remains attractive from a valuation perspective and recommend taking advantage of any dips,” it added.
On Monday, selling pressure continued at the PSX, as its benchmark KSE-100 Index closed negative for the fourth consecutive session, settling at 111,743.53 amid a lack of fresh positive triggers.
Globally, Asian shares and the dollar steadied on Tuesday, as traders waited on a rate cut in Australia and company earnings in China. In contrast, European shares marked record highs on the prospect of ramping up defence spending to back up any Ukraine peace deal.
The Australian dollar stood near a two-month high ahead of a central bank rate decision due at 0330 GMT.
Markets have priced about an 89% chance of a 25 basis point rate cut.
S&P 500 futures were up 0.2% and European futures were flat in Asia morning trade. Japan’s Nikkei rose 0.3%.
The pan-European STOXX 600 index closed 0.5% higher as a gauge of defence and aerospace stocks surged 4.6% to lifetime peaks, having already more than doubled in value since Russia invaded Ukraine three years ago.
Investors expect earnings in the industry to continue rising strongly. This is driven by a significant surge in defence budgets to meet new security needs – which analysts have dubbed a “supercycle” for the sector.
US markets were closed overnight for a public holiday.
This is an intra-day update
American Dollar Exchange Rate