On Wednesday, the scholarship witnesses extreme volatility while geopolitical tensions with India triggered a panic sale at the start of trade, sending the KSE-100 reference index plunging by more than 6%.
However, the market managed to recover a large part of the losses by noon, supported by the optimism of investors at the next meeting of the board of directors of the International Monetary Fund (IMF).
The KSE -100 index of the Pakistan Stock Exchange (PSX) fell to an intra -day hollow of 107,007.68, a drop of 6,560.82 points, or -5.78%, compared to the previous fence of 113,568.50. At its high session, the KSE -100 rebounded at 112,457.37 points, still down 1,111.13 points, or -0.98%.
“The Pakistan Stock Exchange, after having dropped 6% at the opening, has recovered and is down 1% now. Many believe that after that, there will be no major climbing between the two neighbors and the dust will eventually set up,” said Mohammed Sohail, CEO of topline Securities.
“Investors seem optimistic about the next meeting of the IMF board of directors, which will decide the loan tranche for Pakistan,” he added.
The sharp early drop followed the military strikes of India targeting the areas in Punjab and the cashmere of Azad. In response, the armed forces of Pakistan launched retaliation operations, lowering five Indian Air Force planes, including three gusts, a su-30mki and a MIG-29, as well as a combat drone.
Pakistan has also targeted and destroyed the headquarters of the Indian Brigade and several positions along the control line (LOC), according to the Director General of Inter-Services Public Relations (ISPR), Lieutenant-General Ahmed Sharif Chaudhry.
The CEO ISPR confirmed that all the Pakistani jets involved in the commitment had returned safely. Meanwhile, 26 Pakistani civilians were martyred and 46 others wounded in Indian missile strikes, according to the army declaration.
India said that his offensive was in retaliation for the recent death of more than two dozen Indian tourists illegally occupied Jammu-et-Cachemire (IIOJK), an incident he blamed in Pakistan-an accusation of Islamabad strongly refused.
Despite increased military tensions, the feeling of the market seemed to be stabilized by optimism during the IMF board of directors, scheduled for May 9, to deliberate an agreement of $ 1.3 billion at the level of staff under prolonged fund (EFF).
The agenda includes Pakistan’s request for a change in performance criteria and an arrangement under the installation of resilience and sustainability (RSF).
The IMF and Islamabad concluded the staff level in March during the first examination of the rescue program in the process of 28 months and $ 7 billion. If it is approved, the last slice would bring about $ 2 billion in the program.
Tuesday, before climbing, the KSE-100 index had already decreased down 0.47% to 113,568.50 points.
