Stocks rose on Friday as risk appetite improved after reports that Pakistan and Afghanistan agreed to maintain a ceasefire, while earnings season speculation added further momentum.
The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index climbed to an intraday high of 160,535.6, rising 3,802.73 points or 2.43% and registering a low of 158,195.54, reflecting a gain of 1,462.0.93%.
“Bullish activity seen on reports of Pak Afghan agreeing to maintain ceasefire in the cross-border conflict. Speculation in the earnings season played a catalyst role in bullish activity at 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 after a new round of talks in Istanbul. It added that meetings held in Istanbul from 25-30 October was aimed at strengthening the ceasefire that was first agreed in Doha on 18-19 October.
Separately, the State Bank of Pakistan said foreign reserves held by the central bank rose by $16 million to $14.471 billion during the week ended October 24.
Total liquid foreign reserves fell to $19.687 billion from $19.853 billion a week earlier, as commercial bank reserves fell 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 losses, falling 1,732.19 points, or 1.09%, to close at 156,732.87, down from 158,465.06 a day earlier.
During that session, the index rose to an intraday high of 159,507.41, gaining 1,042.36 points, or 0.66%, before settling at a low of 156,327.60, reflecting a decline of 2,137.45 points, or 1.35%.
