Stocks rebound to gain 1,500 points on Saudi bailout

The bullish trend returned to the Pakistan Stock Exchange (PSX) with the KSE-100 Index gaining more than 1,500 points during trading on Wednesday.

Analysts believe that Saudi Arabia’s $6 billion bailout package for the country is the main reason behind restoration of investors’ confidence.

The market opened on a positive note and climbed more than 1,000 points within the first 10 minutes of trading. The benchmark moved up 1,556 points to reach 39,271 points at the close. Trade volume and value also increased significantly.

Trading activity was led by power generation and distribution sector. The chemical and banking sectors followed respectively.

Senior analyst Ahsan Mehnati said that the Saudi package worth $6 billion triggered the bullish trend. He said that till yesterday, the market was being driven by negative sentiments based on the concerns regarding the imbalance of external payments.