PSX ends week lower, closes Friday up 1% on policy boost

PSX saw a trend reversal as KSE-100 jumped 1,836 points to close at 184,175

KARACHI:

The Pakistan Stock Exchange (PSX) staged a robust trend-reversal rally on Friday with the benchmark KSE-100 Index surging over 1,800 points to close at over 184,100, marking a strong rebound following a sharp sell-off the previous day amid geopolitical jitters.

The PSX witnessed a strong trend-reversal session as the KSE-100 Index surged 1,836 points, or up 1.01%, to close at 184,175.

Market sentiment improved on positive geopolitical developments, with official statements from both the United States and Iran signalling willingness to engage in dialogue and avoid escalation.

Read More: PSX plunges over 6,000 points

Further support came from the prime minister’s announcements, including a Rs4.04/kWh reduction in power tariffs for industries, a Rs9/kWh cut in wheeling charges, and a reduction in the Export Refinance Scheme rate to policy rate minus 6% from minus 3% earlier, providing much-needed relief to the industrial and export sectors.

Index heavyweights ENGROH, LUCK, UBL, MEBL, MARI, HBL, PPL, EFERT, JVDC, and HUBC led the rally, collectively adding 1,560 points.

Market activity remained healthy, with volumes of 802 million shares and turnover of Rs50.7 billion, while KEL led the volume chart with 81.4m shares traded.

The PSX posted its seventh consecutive negative week, with the KSE-100 Index shedding 4,992 points (-2.64%). The index opened at 189,789, hit an intra-week high of 191,033, fell to a low of 181,961, and settled at 184,175 by week’s end.

The KSE-100 Index staged a partial recovery today, reclaiming the 184k level. Going forward, the index may advance toward the recent high of 191k, provided no adverse geopolitical developments emerge.