KSE-100 rebound wipes out Thursday’s slide by Friday midday

The KSE-100 rebound on Friday erased Thursday’s sharp fall before the midday prayer break, as buyers returned to banks and energy shares.

The benchmark stood at 178,434.59 when trading paused at noon. Compared with Thursday’s close, the index added 1,060.83 points, a rise of 0.60 percent.

How the KSE-100 rebound unfolded

The index opened lower on Friday morning. It then recovered step by step, and its low for the session was 176,865.05.

By the 12pm break, the market had reversed the whole of Thursday’s decline. The day’s high matched the level at the break. Banks and energy shares did most of the lifting, and the index finished the morning at its peak.

Trading stayed moderate before the pause at the Pakistan Stock Exchange. Investors handled about 90 million shares in the ready market, worth roughly Rs9.83 billion.

Demand came from lenders, gas and oil producers, fuel retailers and refiners. Big index names such as MARI, ARL, PRL, POL and PSO rose, as did SSGC and the lenders HBL, MCB, NBP and UBL. MARI stood out.

What dragged down the KSE-100 rebound’s starting point

Thursday’s session was volatile. Early on, the KSE-100 climbed towards the 180,000 mark. However, heavy selling then erased those gains.

Dealers linked the selling to domestic political uncertainty. As a result, the index closed down 1,710.04 points, or 0.95 percent, at 177,373.76. The previous session had ended at 179,083.80.

Overall breadth was weak. Of 500 companies in the ready market, 316 lost ground, 155 gained and 29 did not move.

Meanwhile, volume reached 1,070.480 million shares, down from 1,248.208 million a day earlier. The value of those trades fell to Rs31.636 billion from Rs41.812 billion.

Market capitalisation also shrank, to Rs19.224 trillion from Rs19.377 trillion. In the futures market, 54 companies advanced, 252 declined and six did not move.

Winners and losers on the board

Bhanero Textile Mills topped Thursday’s gainers, adding Rs116.71 to finish at Rs1,283.83. Pakistan Engineering Company added Rs60.08 and settled at Rs1,115.10.

Among the day’s decliners, PIA Holding Company shed Rs180.99 and ended at Rs14,044.00, while Unilever Pakistan Foods dropped Rs160.02 to Rs26,299.98.

Busiest stocks and futures trading

Tasdeeq Information traded 147.356 million shares on Thursday, while F. Nat. Equities traded 55.342 million. Those two names sat near the top of the volume chart.

Futures trading was lighter too. Futures turnover reached 172.914 million shares, valued at Rs6.718 billion. The session before, it had been 205.221 million shares and Rs9.358 billion. In all, 312 companies traded in that market.

What investors will watch next

Market participants saw choosy buying in energy and banking names once the previous day’s profit-taking ended. Still, they said caution lingered near the recent highs.

Therefore, the afternoon session will show whether the morning recovery can hold. Traders will also watch how political news develops, since it drove Thursday’s mood.

For now, the KSE-100 rebound has put the index back above its previous close. In addition, the KSE-100 rebound leaves traders hoping that buying in banks and energy stocks lasts into the next week.