After losing more than 1,100 points in the previous session, the KSE-100 rebounded on Tuesday as it closed the day with a modest gain of 107 points, taking a cue from a recovery in the global stock markets.
The KSE-100 started the session with a positive momentum that helped the index reach an intra-day high of 77,746.56, followed by some profit-taking that trimmed the gains.
In the second half, the bulls regained their position before some selling took place in the final hour.
At close, the benchmark index settled at 77,191.34, up by 106.85 points or 0.14%.
“Pakistan equities experienced recovery in today’s trading session, mirroring the trends of international markets,” brokerage house Topline Securities said in its post-market report.
“However, this resurgence was short-lived. The index reached an intraday high of 662 points (0.86%) before closing at 77,193, marking a modest gain of 0.14%,” it added.
HUBC from the power sector gained on the back of the news that the Chinese automotive giant BYD is set to make its official entry into the Pakistani market with a grand brand launch scheduled for August 17, 2024.
Throughout the day, stocks such as SYS, HUBC, PSEL, HMB, and HBL contributed positively, collectively adding 242 points to the index. Conversely, BAHL, LUCK, and PSO had a negative impact, collectively subtracting 159 points, Topline said.
Fear of the US falling into recession after weak economic data last week triggered panic across global markets with the KSE-100 – the benchmark index for Pakistan’s stock market – also feeling the heat on Monday when the benchmark index lost 1,141 points.
However, analysts had said Pakistan stocks would be more immune to the wider selloff than some of its regional peers due to the heavier balance of local participation.
“Some affect may be seen (at PSX) amid fall in global markets,” Mohammed Sohail, CEO at brokerage house Topline Securities, told Business Recorder on Monday.
“However, a major impact is unlikely as local investors remain key players and they are looking for value deals with economic stability and falling interest rates.”
Globally, equities in Asian emerging markets regained some footing on Tuesday after a brutal global sell-off a day earlier, but trade was cautious as investors contend with the unwinding of yen carry trades and worries over a slowdown in the United States.
An MSCI gauge of Asian emerging market equities outside of Japan rose as much as 1.7% to mark its best day since early June, after sliding 4.2% on Monday. An index which includes Japan bounced 3% as the Nikkei staged a solid recovery.
In their notices to the PSX on Tuesday, Pakistan’s Exploration and Production (E&P) companies, Pakistan Oilfields Ltd (POL), Oil & Gas Development Company Ltd (OGDC), and Pakistan Petroleum Ltd (PPL), all announced further testing results from the newly discovered Razgir-1 exploratory well in the Kawagarh formation, located in the Kohat district of Khyber Pakhtunkhwa.
Meanwhile, Pakistan Petroleum Limited (PPL), an oil and gas exploration firm, has registered a marked increase in gas production from Sui Gas Field through revamping of SML Compressors.
The E&P, a key supplier of natural gas in the country, shared the development in its notice to the bourse.
Volume on the all-share index jumped to 600.9 million from 501.2 million a session ago.
However, the value of shares declined to Rs17.12 billion from Rs21.06 billion in the previous session.
Kohinoor Spinning was the volume leader with 147.51 million shares, followed by Yousuf Weaving with 53.67 million shares, and Hascol Petrol with 41.38 million shares.
Shares of 443 companies were traded on Tuesday, of which 206 registered an increase, 176 recorded a fall, while 61 remained unchanged.
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