Pakistan Stock Exchange Rebounds Amid Geopolitical Tensions
The PSX's rebound is a testament to the market's ability to withstand external pressures, and investors will be monitoring the situation closely to capitalize on potential opportunities. With the government's efforts to support the economy and the positive contributions from various sectors, the market is expected to remain volatile but resilient in the coming days.
The Pakistan Stock Exchange's (PSX) benchmark KSE-100 Index closed 449.53 points or 0.39% higher at 115,469.34 on Friday, recovering from a volatile session that saw the market initially rally over 800 points before midday selling wiped out most of the gains.
The rebound offered some respite after Thursday's sharp sell-off, when the KSE-100 Index plunged by over 2,200 points. Regional markets posted gains driven by a rebound in global tech stocks, with Alphabet (Google's parent company) exceeding profit expectations and reaffirming its commitment to AI investment. The PSX's rebound signals resilient investor interest amid a choppy global and domestic landscape.
The market's performance was also influenced by geopolitical tensions between Pakistan and India, which escalated after an attack in occupied Kashmir that killed over two dozen tourists. Experts predicted that the market would remain cautious, with investor sentiment hinging on India-Pakistan relations, corporate results, and the monetary policy decision in early May. The IMF had also lowered Pakistan's economic growth forecast to 2.6% for the current fiscal year and 3.6% for the next fiscal year.
Despite the challenges, some sectors contributed positively to the market, including the Fertilizer, Food, and Automobile sectors. Foreigner buying was also witnessed, with OMCs and E&Ps being major buyers. The government's efforts to revive the economy, including the relaunch of the privatization process of PIA, are expected to support the market in the long term.
As the Pakistan Stock Exchange continues to navigate the complexities of the global and domestic landscape, investors will be closely watching the developments in the region and the government's efforts to support the economy. The market's resilience in the face of challenges is a positive sign, and investors will be looking for opportunities to capitalize on the country's growth potential.