KARACHI: A day after the stock market plunged by over a thousand points due to recession fears, the Pakistan Stock Exchange (PSX) rebounded on Tuesday and witnessed an upward trajectory.
There was optimism at the stock market that the restrictions from the lockdown imposed to contain the spread of the coronavirus will be eased. There were calls from traders that they would reopen markets and resume business activities despite reports that the government would extend or tighten the lockdown.
The benchmark KSE 100 index witnessed a gain of 189.75 points (0.61%) and closed at 31,222.74 points. The total volume of shares was 105.596 million valued at Rs4.341 billion. Meanwhile, the KSE 30 index also increased by 95.36 (0.69%) and closed at 13,819.61 points. The total volume of share at the bourse were 105.596 million.
The shares prices of several top active stocks saw an increase notably MLCF (3.32%), PIOC (6.10%), DGKC (3.07%), GATM (6.47%), and Unity (1.79%). There was increased investment in the cement sector as the government announced to reopen the construction sector.
The oil and gas sector and oil exploration sector saw a decrease in investment as the price of global crude declined. This comes days after OPEC announced a historic cut in global supplies and an end to the price war between Russia and Saudi Arabia.
The government announced a partial lifting of the lockdown and several sectors were given permission to resume business activities. This provided much need trigger to the stock market which improved investor confidence, even though trading remained volatile and range-bound.
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