PTBP Web Desk
In a dramatic turnaround from the previous day’s market turmoil, the Pakistan Stock Exchange (PSX) showcased a robust recovery.
After experiencing a significant plunge of over 3,500 points, the benchmark KSE-100 Index made an impressive rebound, gaining over 3,000 points within the first hour of trading on Wednesday. By 10:20 AM, the index was at 97,998.46, marking an increase of 3,424.30 points or 3.62%.
The trading session was marked by substantial buying interest across multiple sectors. The banking sector, which significantly influences the index, was at the forefront of the rally. Notable banking stocks such as Habib Bank Limited (HBL), National Bank of Pakistan (NBP), and MCB Bank saw their shares trading positively.
Automobile Assemblers: Companies in this sector benefited from a general increase in consumer confidence post-crisis.
Oil and Gas Exploration: Firms like Oil and Gas Development Company (OGDC) and Sui Southern Gas Company (SSGC) also saw gains, possibly due to anticipated stability in policy and operations.
Oil Marketing Companies (OMCs): These companies saw a surge, reflecting optimism about economic recovery and increased industrial activity.
Power Generation: Entities like Hubco (Hub Power Company) continued to trade positively, indicating a sector-wide confidence boost.
The previous day’s decline was attributed to widespread political unrest, particularly in Islamabad, where the situation escalated to the point where the Pakistan Army was deployed to quell protests led by key political figures like Bushra Bibi and Ali Amin Gandapur. However, the market sentiment shifted positively after law enforcement agencies took decisive actions overnight, effectively clearing major protest sites like Blue Area and D-Chowk. This move by the authorities signaled a return to normalcy, which investors interpreted as a positive development for stability and governance.
Mohammed Sohail, CEO of Topline Securities, commented, “Pakistan stocks recovered at opening after the opposition protest got over last night,” encapsulating the market’s relief and subsequent bullish reaction.
The upbeat market mood, the State Bank of Pakistan (SBP) made significant policy changes. The central bank eliminated the Minimum Profit Rate (MPR) for conventional banks on specific deposit types, which could lead to more competitive deposit rates and encourage savings. Additionally, Islamic Banking Institutions (IBIs) were instructed to ensure that their depositors receive at least 75% of the weighted average gross yield from investment pools, fostering a more equitable profit distribution model.
