The stock market rose on Friday as risk appetite improved following reports that Pakistan and Afghanistan agreed to maintain a ceasefire, while speculation over earnings season added further momentum.
The Pakistan Stock Exchange (PSX) benchmark KSE-100 index rose to an intraday high of 160,535.6, gaining 3,802.73 points, or 2.43%, and recorded a low of 158,195.54, reflecting a gain of 1,462.67 points, or 0.93%.
“Bullish activity was observed after reports that Pak Afghan agreed to maintain ceasefire in the cross-border conflict. Earnings season speculation played a catalytic role in the bullish activity in PSX,” said Ahsan Mehanti, Managing Director and CEO of Arif Habib Commodities.
Turkey’s Foreign Ministry confirmed late Thursday that Pakistan and the Afghan Taliban regime agreed to maintain a ceasefire following a new round of talks in Istanbul. He added that the meetings held in Istanbul from October 25 to 30 were aimed at solidifying the ceasefire first agreed in Doha on October 18 and 19.
Separately, the State Bank of Pakistan said foreign exchange reserves held by the central bank increased by $16 million to $14.471 billion during the week ending October 24.
Total liquid foreign reserves fell to $19.687 billion from $19.853 billion the previous week, while commercial banks’ reserves declined to $5.216 billion from $5.398 billion. The SBP expects its reserves to reach $17.8 billion by the end of this fiscal year.
On Thursday, the market extended its losses, losing 1,732.19 points, or 1.09%, to close at 156,732.87 from 158,465.06 the previous day.
During that session, the index rose to an intraday high of 159,507.41, gaining 1,042.36 points, or 0.66%, before falling to a low of 156,327.60, reflecting a decline of 2,137.45 points, or 1.35%.
