Equity market makes sharp recovery on Pakistan response to India

KARACHI: The equity market made a sharp recovery on Wednesday as it fell by over 1,400 points owing to mounting tension at Pak-India borders.

The benchmark KSE-100 index closed at 38,693 points as against 38,822 points showing a decline of 129 points.

Analysts at Arif Habib Limied said that market witnessed the steep decline from 41,767 points and reached another significant decline of 1491 points, taking the index down to 37,330 points, which is virtually the same level it was before the past rally.

Scrips, all and sundry went down in the crisis of confidence which was caused by the border confrontation with India and heightened tensions due to taking down of Indian planes by Pakistan Air Force.

Several leveraged positions are believed to have become a casualty of today’s steep decline.

Recovery settled after DG ISPR’s press conference, which further gained ground after PM’s address in the closing half hour.

The unadjusted closing was +36 points however, unadjusted closing of KSE100 index ticked -129 points.

Sectors contributing to the performance include O&GMCs (-25 points), Cement (-20 points), Autos (-18 points), Pharma (-17 points), Technology (-12 points), Tobacco (+27 points).

Volumes increased from increased significantly from 162 million shares to 274 million shares (+69 percent DoD).

Average traded value also increased by 48 percent to reach US$ 74 million as against US$ 50 million.

Stocks that contributed significantly to the volumes include BOP, KEL, FCCL, EPCL and LOTCHEM, which formed 33 percent of total volumes.

Stocks that contributed positively include PAKT (+27 points), PPL (+26 points), HBL (+16 points), BAHL (+11 points), and MEBL (+10 points). Stocks that contributed negatively include MCB (-25 points), OGDC (-19 points), INDU (-12 points), KEL (-10 points) and HASCOL (-9 points).

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