Shares at PSX gain 1,000 points in intraday trade amid clarity on political front

The benchmark KSE-100 index gained 1,040.65 points or 1.70% to reach 62,267.57 points during the intraday trading, up from yesterday's close of 61,226.93 points.

A day earlier, the market PSX's flagship KSE-100 index plummeted below the crucial 60,000 level in the first 15 minutes after the opening bell amid the ongoing political uncertainty.

However, it staged an epic comeback as investors wantonly harvested the abundant oversold stocks in late buying, surging over 1,600 points from its intraday low and closing marginally higher.

The index surged by as much as 1,614 points or 2.7% from its intraday low, concluding at 61,226.93, marking a gain of 161.61 points or 0.26% from the prior session's close.

Analysts pinned the fluctuations on the uncertainty over the formation of a new government, adding, that the KSE-100's recent rebound after political uncertainty highlights the inherent agility of market players.

This adaptability proves crucial as the political and economic landscape in Pakistan remains in flux, while investors are closely monitoring the developments and are ready to adjust their strategies to make the most of the opportunities and minimise risks in this ever-evolving environment.

The PSX witnessed a vicious two-day sell-off that shoved the benchmark index below 60,000 following the February 8 general elections.

Alpha Beta Core's Khurram Schehzad had attributed the downward trajectory due to the uncertainty over the formation of the new government.

The stock market also received a boost as MSCI on Tuesday announced the inclusion of 22 Pakistani companies in its Frontier Market and Small Cap indexes, effective from February 29.

The global index provider added three Pakistani firms — Bank Al Habib Ltd, Interloop Ltd and Sui North Gas Pipelines Ltd — to its Frontier Market Index, which tracks the performance of equity markets in 28 countries.

Meanwhile, 19 Pakistani companies including PSX were added to the MSCI Frontier Market Small Cap Index, which covers about 14% of the free float-adjusted market capitalisation of the Frontier Market Index.

"After this review, Pakistan’s weight in the Index is expected to be around 3%," the brokerage said. "Due to this adjustment, we anticipate some net flows, although the quantum will not be significant." it added.

Analyst said the index inclusion is a positive development for Pakistan's stock market, as it reflects the improved fundamentals and prospects of the local companies.