Bulls staged a comeback at the Pakistan Stock Exchange on Tuesday, pushing the KSE-100 index over 900 points in intra-day trading.
The rally erased off the hefty losses borne by the market a day earlier.
A boost in Pakistan’s vaccination drive accelerated buying activity at the bourse. National Command and Operations Centre (NCOC) Chairman Asad Umar announced that the country had achieved the one million vaccinations mark.
Moreover, delay in the anticipated cabinet reshuffle by Prime Minister Imran Khan provided much-needed clarity on the political front, which enticed investors to make fresh investments.
Trading began on a positive note as investors resorted to renew their holdings. A slump was witnessed after mid-day, however, it was corrected duly in the later hours. Late session rally widened the gains and helped the index close above theb44,400-point mark.
At close, the benchmark KSE-100 index recorded an increase of 856.49 points, or 1.97%, to settle at 44,404.7 points.
Speaking to The Express Tribune, Alpha Beta Core CEO Khurram Schehzad said that the rally was led by political stability.
“On the other hand, improvement in Pakistan’s Covid-19 vaccination drive also helped fuel the bull run,” he said.
AA Gold Commodities Director Operations Adnan Agar said that market participants cheered Prime Minister Imran Khan’s refusal to impose a nationwide lockdown that aided the rally. Such a move would have striked the economy and businesses adversely.
He anticipated the bourse to remain volatile during the next few sessions citing that on one hand, investors are cheering the release of $500 million tranche by the International Monetary Fund while on other hand, rising Covid-19 infections could turn the direction of market around.
“The daily number of Covid-19 cases will largely influence the direction of the market over the next few days,” he said.