KARACHI: Pakistan stock market has maintained outpaced recovery for the second successive day, surging another 900 points in intra-day trading, to well above the 30,000-point mark on Tuesday.
At 1:23 pm, the Pakistan Stock Exchange’s (PSX) benchmark was up 905 points, or 3 per cent, to 30,467 points.”We think the market (had) over reacted to bad headlines on the economic and political fronts,” Topline Securities said in a comprehensive commentary on Tuesday.
Prior to Monday’s smart gain of around 800 points, the market had dropped over 3,000 points (10 per cent) in the past eight consecutive sessions to a five-year low below 29,000 points mark on Friday.
The brokerage house noted that the market had fallen 46 per cent, (64 per cent in US dollar terms) from it’s May 2017 peak of close to 53,000 points.
The historic low share prices attracted investors to jump on the value hunting.
“Such valuation numbers were not seen since the infamous market closure in 2008,” it said. “Any positive news on the political (settlement with Indian or opposition parties) or economic front (Eurobonds, Carry Trades) will help in a 5-10 per cent market recovery in the short run.”
Earlier, massive key interest rate hikes and rupee devaluation were among the factors played havoc with the stock market.
The brokerage house believed the interest rate cycle was now close to its peak. It may start coming down in the next 12-18 months, it said. Moreover with falling imports Pakistan currency may not show major fluctuations going forward, it added.