Stocks eke out gains amid extreme volatility
KARACHI: Amid persistent geopolitical tensions, the Pakistan Stock Exchange (PSX) opened the week on a depressed note, with the market remaining under extreme volatility. However, late value-hunting allowed the benchmark KSE-100 index to close the session in...
KARACHI: The Pakistan Stock Exchange began the week under pressure on Monday, with persistent geopolitical tensions and uncertainty in global energy markets driving sharp swings through the session before late buying lifted the benchmark into slight positive territory.
According to Topline Securities Ltd, the KSE-100 index closed at 175,927.74 after adding 124.95 points, or 0.07 per cent. The market moved in a wide 2,493-point range during trading, reflecting a session dominated by caution and rapid reversals. The index climbed to an intraday high of 176,129 and fell as low as 173,636 before recovering in the final stretch.
Early trade was weak, with the benchmark opening nearly 2,000 points lower, said Najib Ali, Deputy Head of Trading at Arif Habib Ltd. He linked the slump to heightened tensions between the United States and Iran after both countries exchanged strikes over the weekend, which added to the risk-off mood across markets. Oil prices also rose by about 3 per cent at the open, further unsettling investors.
Despite the heavy selling pressure, value hunters stepped in later in the day, particularly in heavyweight banking and refinery shares. Topline Securities said strong late-session buying in these sectors helped erase the sharp intraday losses and kept the market in the green by the close. Selective interest in other blue-chip names also supported the recovery.
United Bank, Attock Refinery, Cnergyico PK, Engro Holdings and Hub Power were the main contributors to the index’s recovery, together adding about 338 points. On the other hand, Habib Bank, Millat Tractor, Engro Fertiliser, Pakistan Services and Service Industries collectively shaved 133 points off the benchmark.
Market activity remained fairly firm even amid the volatility. Traded volume rose 8.83 per cent to 675.9 million shares, while total turnover increased 1.28 per cent to Rs30.2 billion.
Analysts said the market is likely to remain highly sensitive to geopolitical headlines in the near term. While relatively attractive valuations may continue to draw selective buying, a broader and more durable recovery would depend on a reduction in regional tensions and greater stability in oil markets.
This report is based on a monitored public feed and is attributed to Dawn Business.
Source: Dawn Business - https://www.dawn.com/news/2017152/stocks-eke-out-gains-amid-extreme-volatility
