Stock markets recover in response to PM's offer for peace-talks

February 27, 2019 (MLN): KSE – 100 Index has recovered around 1,362 points lost earlier in today’s trade, after Prime Minister Imran Khan’s address to nation, where the premier has again offered to conduct peace talks with India. Overall, the market closed at 38,692 level after losing 128 points.

The stock market observed a massive bloodbath during initial hours of the trading session, as the benchmark index nose-dived by around 1163 points at 11.30 am. This selling spree by investors was an instinctive response to retaliation which took place on the Pak-India border during early hours of the day, following rising tensions between the two neighboring countries.

The sectors that suffered maximum losses at the hands of today’s stock market disarray included Commercial Banks (-303 pts), E&P Companies (-215 pts), Fertilizer (-200 pts) and Cement (-124 pts). Moreover, the scrips that contributed the most in driving the index towards losses included OGDC (-4.51%), ENGRO (-4.00%), HUBC (-4.57%), HBL (-3.23%) and LUCK (-4.43%).

Riding in the same boat were India’s benchmark indices, which ended lower as they remained volatile throughout the day amidst ongoing regional tensions. The Sensex was down by 68 points at 35905 points, whereas Nifty was down by 28 points at 10806 points.

The tension between two countries also left its mark on international markets, as an earlier rally had the wind taken out of it after Pakistan said it had shot down two Indian jets in its airspace in Kashmir, fueling concerns of conflict between the nuclear-armed rivals.

Regional investors had been in a broadly upbeat mood owing to optimism about a China-US trade deal, a dovish outlook on monetary policy from Federal Reserve boss Jerome Powell and easing Brexit worries.

But trading floors were shaken in the afternoon by a statement from the Pakistan Air Force that it had downed the two planes and arrested one of the pilots.

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