Pakistan Stock Exchange bounces back

Karachi, May 2 (PTI) The Pakistan Stock Exchange made a surprise come back on Friday after seeing shares plunge this week due to the escalating tensions and war clouds with India.

The Pakistan Stock Exchange (PSX) after performing in the negative this week which saw it lose 3,500 points on Wednesday bounced back on Friday.

The benchmark KSE-100 index increased by 2,787 points, or 2.5 per cent, to close at 1,14,113.93.

Financial analysts put down the comeback to indications about a de-escalation in tensions and also investors being encouraged by the inflation data and the monetary policy announcement on Monday, with expectations of a rate cut ranging from 50 to 100 basis points.

Fatima Bucha of AKD Securities said the market has been viewing the Pakistan and India tensions very closely and “with no further escalation, the market reacted positively today.” Yousuf M Farooq, director research at Chase Securities said additionally, the International Monetary Fund's board meeting for Pakistan is scheduled for May 9 and investors are focused on developments regarding regional tensions, interest rates, and the upcoming IMF decision.

Another financial analyst also put down the comeback in the PSX to there not being any military action from India.

“The likelihood of a full-scale war between Pakistan and India remains low, constrained by the nuclear deterrence factor,” he said. PTI CORR NPK NPK

Source: PTI