The capital market began Wednesday’s session on a bullish note, extending a relief-driven bounce from the previous day’s losses, as investors responded to hopes that regional tensions may be stabilising.
The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index climbed to an intraday high of 111,881.02 points, gaining 1,872.00 points, or 1.70%, from the previous close of 110,009.02.
During the session, the index also touched a low of 109,961.94 points, reflecting a marginal dip of 47.08 points, or 0.04%.
“Pakistan stocks open now up 1.7% or 1850 pts amid expectations that escalation may cool down,” said Mohammed Sohail, CEO of Topline Securities.
Tensions between Pakistan and India elevated after New Delhi launched an unprovoked military operation targeting multiple Pakistani cities. The action followed the Pahalgam incident in Indian Illegally Occupied Jammu and Kashmir (IIOJK), where an attack on tourists led India to initiate ‘Operation Sindoor’.
Islamabad has rejected India’s allegations and termed the strikes as unjustified aggression, resulting in the martyrdom of at least 31 Pakistani civilians. Pakistan retaliated by downing five Indian Air Force jets and several drones.
Meanwhile, investor sentiment remains focused on the upcoming IMF Executive Board meeting scheduled for May 9, which will decide on a $1.3 billion tranche under the Extended Fund Facility (EFF).
The agenda also includes Pakistan’s request for performance criteria adjustments and access to additional funds through the Resilience and Sustainability Facility (RSF).
Approval of the package would raise total disbursements under the current programme to approximately $2 billion.
On Tuesday, the KSE-100 had dropped by 3.13%, or 3,559.48 points, closing at 110,009.02 following a sharp sell-off driven by geopolitical uncertainty.
