Shares at PSX reverse trend, gains 448.88 points

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Shares at the Pakistan Stock Exchange (PSX) recovered some of their losses from a day earlier on Wednesday as the benchmark index started gaining shortly before trading ended.

The benchmark KSE-100 index rose 448.88 points, or 1.17 per cent, to close at 38,791.09 points. It reached an intraday high of 38,945.97 points, up 603.76 points, or 1.57pc, around 3:28pm.

“The market was in the oversold territory after the sharp correction earlier in the week, so a pullback is not a major surprise,” said Intermarket Security’s Head of Equity Raza Jafri.

He said the market also received a boost from State Bank of Pakistan (SBP) Governor Jameel Ahmad’s assurance that opening of letters of credit (LCs) would be facilitated in a better manner. “For the market to rise higher though, further clarity on politics and more comfort on the economy is a must,” Jafri added.

Topline Securities Senior Manager Equity Mohammad Arbash attributed the index’s recovery to the SBP governor’s assurance of inflows and a stop to the rapid decline in foreign exchange reserves.

He added that the pressure caused by a sell-off by mutual fund managers and institutions also eased and a buying spree in the refinery and technology sectors at the lower level led to the index’s rise.