PSX bounces back as calm returns to market

The bourse opened on a positive note Friday, rebounding from Thursday’s heavy losses amid a relatively calm start to the day.

Investors appeared to regain some confidence after early trade passed without fresh incidents that could rattle sentiment.

The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index climbed to an intraday high of 105,946.01 points, gaining 2,419.2 points, or 2.33%, from the previous close of 103,526.81.

The index recorded a low of 102,420.82 points, down 1,105.99 points, or -1.06%, reflecting intraday volatility

“After falling sharply by 6% yesterday due to drone attacks, Pakistani stocks have recovered and are up 2% in the first 30 minutes of trading on Friday,” said Topline Securities CEO Mohammad Sohail.

“So far, there has been no news of any major escalation helping in restoring confidence,” he added.

Investor focus is firmly fixed on the IMF Executive Board meeting taking place today, where a $1.3 billion disbursement under Pakistan’s ongoing 37-month Extended Fund Facility (EFF) is up for approval.

The Board will also consider Islamabad’s request to modify performance criteria and to access funds under the Resilience and Sustainability Facility (RSF). The IMF and the Government of Pakistan reached a staff-level agreement in March during the first review of the $7 billion programme.

If approved, the upcoming tranche would bring total disbursements to approximately $2 billion.