The stock market rose on Friday as risk appetite improved following reports that Pakistan and Afghanistan agreed to maintain a ceasefire, while speculation over earnings season added further momentum.
The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index climbed to an intraday high of 160,535.6, gaining 3,802.73 points, or 2.43 percent, and recorded a low of 158,195.54, reflecting a gain of 1,462.67 points, or 0.93 percent.
“Bullish activity was seen after reports that Pak Afghan agreed to maintain ceasefire in the cross-border conflict. Speculations over the earnings season played a catalytic role in the bullish activity on the PSX,” said Ahsan Mehanti, Managing Director and CEO of Arif Habib Commodities.
The Turkish Foreign Ministry confirmed on Thursday evening that Pakistan and the Afghan Taliban regime had agreed to maintain a ceasefire following a new round of negotiations in Istanbul. He added that the meetings held in Istanbul from October 25 to 30 aimed to consolidate the ceasefire first agreed in Doha on October 18 and 19.
Separately, the State Bank of Pakistan said foreign exchange reserves held by the central bank increased by $16 million to $14.471 billion in the week ended October 24.
Total liquid foreign exchange reserves fell to $19.687 billion from $19.853 billion a week earlier, while commercial bank reserves declined to $5.216 billion from $5.398 billion. The SBP expects its reserves to reach $17.8 billion by the end of this fiscal year.
On Thursday, the market extended its losses, losing 1,732.19 points, or 1.09%, to close at 156,732.87 against 158,465.06 a day earlier.
During this session, the index rose to an intraday high of 159,507.41, gaining 1,042.36 points, or 0.66%, before falling to a low of 156,327.60, reflecting a decline of 2,137.45 points, or 1.35%.
