Karachi, December 20, 2024 – After enduring significant losses in the past three trading sessions, the Pakistan Stock Exchange (PSX) rebounded sharply on Friday, posting a substantial gain of 3,238 points or 3.05%. This recovery is attributed to growing optimism regarding potential political dialogue between the government and the opposition party.
Market analysts noted that the bullish trend at the PSX was driven by investor speculation about constructive talks between the ruling coalition and the Pakistan Tehreek-i-Insaaf (PTI). Such discussions are anticipated to ease political tensions and restore market confidence.
The benchmark KSE-100 index of PSX closed the day at 109,513 points, recovering from the previous day’s close of 106,275 points. This robust rally reflects renewed investor sentiment and strategic buying in undervalued stocks.
According to a commentary by Topline Securities Limited, the PSX rebound followed three consecutive sessions of bearish performance. The report highlighted that the benchmark index surged by 3.05%, underpinned by expectations of a low-interest-rate environment and the possibility of further monetary policy easing.
Key trading activity for the day saw substantial contributions from major stocks, including MARI (Rs 5.95 billion), PSO (Rs 2.73 billion), HUBC (Rs 2.58 billion), ATRL (Rs 1.51 billion), and FFC (Rs 1.46 billion). These stocks dominated trading value and provided a solid foundation for the market’s upward momentum.
Point-wise, significant contributions to the index’s gains came from FFC, MARI PA, SYS, HUBC, UBL, MCB, and BAFL, collectively adding 1,587 points. The day’s traded volume reached an impressive 748 million shares, while the traded value stood at Rs 39.3 billion.
Analysts also highlighted that bargain hunting played a key role as investors seized the opportunity to buy shares at lower valuations. The market’s positive response underscores the resilience of investor sentiment, even amid political uncertainty.
In conclusion, the PSX’s sharp recovery reflects a blend of optimism surrounding potential political dialogue and favorable macroeconomic conditions. Market participants are closely watching developments in the political arena, as a stable environment could further bolster investor confidence and sustain the positive momentum in the coming weeks.