Skip to main content

PSX climbs nearly 3,000 points in intraday trade as bulls return a day after record drop in shares

Bulls managed to grab a hold of the trade floor after three days as shares at the Pakistan Stock Exchange (PSX) managed to climb nearly 3,000 points on Friday in intraday trade.

The surge comes a day after the benchmark KSE-100 index suffered the largest single-day point-wise loss of 3,790 points on unabated across-the-board selling pressure.

The KSE-100 index climbed by 2,996.39, or 2.82 per cent, to stand at 109,271.36 points from the previous close of 106,274.97 at 2:39pm.

However, failing to sustain the rally, shares plunged further in intraday trade, standing at 108,189.52 points, up by 1,914.55 from the previous close.

The index lost over 5,000 points or 4.4pc in the previous two sessions post-rate cut, which could be classified as nervous selling if it was called panic-offloading despite positive economic indicators.

Tahir Abbas of Arif Habib Ltd (AHL) told Dawn yesterday that the correction was healthy since the market had consistently set records in recent weeks.

Bears had maintained control of the stock market for three days following the State Bank of Pakistan (SBP)’s announcement of a 200bps rate cut, coupled with guidance indicating a likely modest uptick in inflation in the coming months.

On Monday, SBP had reiterated that core inflation, which stood at 9.7pc, was “proving to be sticky, whereas inflation expectations of consumers and businesses remain volatile”, decidin on a cautious key interest rate cut of 200bps amid demands of a major rate cut.

Yesterday’s bearish momentum was attributed to a National Assembly bill aimed at targeting non-filers and restricting their ability to invest in mutual funds or maintain bank accounts, creating concern among investors.

However, analysts had assured that such broad-based compliance would ultimately benefit the equity market in the long run and is unlikely to have a significant impact on investment flows in the medium term.

Moreover, analysts had also attributed the decline to “stock-specific selling due to overvaluation concerns”.

More to follow



from The Dawn News - Home https://ift.tt/JeaUKId
Labels:

Comments

Post a Comment

Popular posts from this blog

Ministers rubbish notion that proposed retirement age extension to favour ‘one particular institution’

Information Minister Attaullah Tarar on Tuesday rubbished the notion that a proposed extension in the retirement age was to favour “one particular institution”, adding that the move would be implemented across the board if approved. The rebuttal comes in the wake of media reports claiming that the government was mulling changes to the Constitution to fix the tenure of the chief justice . Currently, judges of the Supreme Court, including the chief justice, retire after attaining the age of superannuation, i.e. 65 years, as stipulated in Article 179 of the Constitution. While giving his opinion recently on the reports of the constitutional amendment, Law Minister Azam Nazeer Tarar had said he “will not vehemently turn down the proposals related to the tenure of the chief justice”. Addressing the issue during a press conference in Islamabad today along since Finance Minister Muhammad Aurangzeb and the law minister, Attaullah said the extension in the retirement age was “a proposal to a...
Post a Comment
Read more

Explainer: Iran’s economy faces rocky road amid rising prices, falling currency

Iran’s economy is going through one of its most difficult periods in years, fueled by sanctions, high inflation, and a significant drop in the value of the national currency, the rial. These pressures have had a direct impact on living standards and have also fueled recent protests. The protests began on Dec. 28 in commercial hubs in the capital Tehran, when shopkeepers, merchants, and small business owners staged strikes and demonstrations to protest soaring inflation, the collapsing rial, and deteriorating economic conditions, and have since grown into nationwide anti-government expressions of discontent involving workers, students, and others across multiple cities. The Iranian president said Sunday that his government is determined to address Iran’s economic problems amid the protests. Masoud Pezeshkian said the government admits to “shortcomings and problems” and is working hard to alleviate the people’s concerns, especially on the economy. Currency collapse at the centre of c...
Post a Comment
Read more

Mitchell Starc surpasses Wasim Akram as most prolific left-arm pacer in Test history

Australian veteran Mitchell Starc became the most prolific left-arm paceman in Test history on Thursday, surpassing Pakistan great Wasim Akram. The 35-year-old bagged England’s Harry Brook at the Gabba in Brisbane on day one of the day-night second Ashes Test for his 415th wicket since his debut at the same ground 14 years ago. It moved him past Wasim, widely recognised as the greatest left-arm bowler the sport has seen. Wasim played 104 Tests for his 414 wickets with Starc reaching the milestone in his 102nd, helped by a career-best 7-58 in the first innings of the opening Ashes Test at Perth. Starc is now 16th on the all-time wicket-taker list and could move above both India’s Harbhajan Singh (417) and South Africa’s Shaun Pollock (421) in the current pink-ball Test. After that he will have New Zealand’s Richard Hadlee (431) in his sights. from Dawn - Home https://ift.tt/xclHiX2
Post a Comment
Read more