The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index closed slightly higher on Friday, after profit-taking wiped out most of its gains made during the first few hours of the day.
The KSE-100 started the session positive, hitting an intra-day high of 63,911.86. However, profit-taking kicked in and wiped out most of the gains.
At close, the benchmark index settled at 63,282.23, up by 79.83 points or 0.13%.
The market during the initial hours of the trading session saw somewhat of a buying spree as tensions between Iran and Pakistan simmered down, with the benchmark index hitting an intra-day high of 63,911.86 level, up nearly 710 points.
Experts attributed the buying spree to easing cross-border tensions between Iran and Pakistan.
“Moreover, prospects of settlement of circular debt” added to the positive sentiment, said Samiullah Tariq, Head of Research at Pak Kuwait Investment Company Limited.
As per reports, the caretaker minister has prepared an innovative plan to reduce the circular debt of energy sector, which has been shared with caretaker Finance Minister Dr Shamshad Akhtar.
According to the main features, the plan will be restricted to public sector companies only, budget neutral and zero leakage. “Total settlement of Rs 1.268 trillion will be done.”
On Thursday, escalating regional tension took its toll on investor sentiment at the bourse as the benchmark KSE-100 index sustained further losses to settle at 63,202.40, a decrease of 364.93 points or 0.57%.
Pakistan said on Thursday that it undertook a series of highly coordinated and specifically targeted precision military strikes against what it called terrorist hideouts in Siestan-o-Baluchistan province of Iran, a little over a day after the neighbour also conducted missile strikes on Pakistani territory.
“A number of terrorists were killed during the Intelligence-based operation – codenamed ‘Marg Bar Sarmachar’,” Pakistan’s Foreign Office said in a press release issued on Thursday.
Globally, the Asian shares bounced on Friday, buoyed by a rally in regional chipmakers, while the yen was set to end the week with heavy losses as investors pared back bets the Bank of Japan would soon abandon its uber-easy policies.