Karachi, December 27, 2023 – The Pakistan stock market staged an impressive rebound on Wednesday, experiencing a sharp recovery of 1,693 points.
The aggressive buying spree by investors played a pivotal role in restoring confidence and lifting the benchmark KSE-100 index of the Pakistan Stock Exchange (PSX).
The KSE-100 index closed at 60,864 points, marking a significant turnaround from the previous day’s closing figure of 59,171 points. The stock market had endured a historic single-day drop just a day earlier, witnessing a staggering 4.11% crash that led to a plummet of 2,534 points. The index had dipped to 59,171 points, a notable decline from the closing figure of 61,705 points on December 22, 2023. The market had experienced an overall decline of 11% from its peak of 66,427 points.
Analysts at Topline Securities Limited provided insights into the market dynamics, noting that Pakistan equities had a recovery day on December 27, 2023. The day initially carried forward the bearish momentum from the previous day, reaching an intraday low at 58,758 points (down 0.70 percent). However, value hunters entered the market at this intraday low, leading to widespread buying activities.
The substantial recovery on December 27 was reflected in the closing figure of 60,864 points, representing a remarkable increase of 1,693 points or 2.86 percent. This rebound showcased the resilience of the market and the ability of investors to seize opportunities amid challenging conditions.
Several sectors witnessed considerable buying interest, contributing to the overall market recovery. The Power, Banks, Tech, Fertilizer, and Cement sectors played a significant role in the surge. Notable contributors to the positive momentum included HUBC, MEBL, SYS, EFERT, and LUCK, collectively adding 481 points to the index.
The day’s trading activity at the bourse was robust, with over 668 million shares changing hands, and the total traded value reaching Rs16 billion. K-Electric (KEL) led the volumes chart with the trading of over 102 million shares, indicating active participation from market participants.
The sharp recovery in the stock market not only alleviates concerns arising from the previous day’s historic sell-off but also highlights the resilience of Pakistan’s equity market. Investors and analysts will closely monitor the market in the coming days for signs of stability and sustained positive momentum.
As the year approaches its end, the dynamics of the stock market will remain under scrutiny, reflecting broader economic conditions and investor sentiment. The recent recovery serves as a testament to the dynamic nature of financial markets and the capacity for swift rebounds in the face of volatility.
