PSX rebounds as KSE-100 gains 877 points after steep fall

KARACHI:

The Pakistan Stock Exchange (PSX ) bounced back on Thursday after Wednesday’s steep decline, with the benchmark KSE-100 Index up 877.04 points, or 0.5%, at 175,653.63 by afternoon.

The market had closed at 174,776.59 a day earlier after losing 1,690 points, or 0.96%, as investors reacted to renewed United States-Iran fighting over the Strait of Hormuz and a sharp rise in global oil prices.

By midday, the index was holding in a range of 175,149.23 to 175,796.24. Volume on the KSE-100 was about 116 million shares, with traded value near Rs7.55billion.

Read: Oil edges down as investors weigh uncertainty over US-Iran strikes

Sentiment improved after the finance ministry said Pakistan had raised a record $3billion through a dual-tranche Eurobond that drew nearly $6billion in orders, almost twice the amount issued. The deal comprised a $1.75billion 5.5-year bond at a 7.5% coupon and a $1.25billion 10-year bond at 7.9%. Officials called it the country’s largest single international bond issuance and a sign of renewed investor confidence after recent credit-rating upgrades.

Buying was concentrated in automobile assemblers, cement, commercial banks, fertiliser, oil and gas exploration companies, oil marketing companies and power generation. Index heavyweights including HUBCO, MARI, OGDC, PPL, POL, HBL, MCB, MEBL and UBL traded in the green.

The successful return to global capital markets helped offset lingering worries over regional tensions and higher energy costs. Trading continues into the afternoon; the close will depend on late flows and any fresh geopolitical news.