PSX edges up on banking, auto gains

Pakistan Stock Exchange (PSX) made a marginal recovery in late trading on Friday as it crept up 30 points due to a strong earnings outlook for banking and auto sectors. Earlier, trading got off to a positive start, with the KSE-100 index reaching its intra-day high of 85,750.18 points. However, the early momentum petered out as the index slipped below the 85,000 mark, hitting the intra-day low of 84,774.45 points before midday. Despite the lacklustre performance, the State Bank of Pakistan's (SBP) revision in exposure limits for small and medium enterprises (SMEs), a 25% year-on-year (YoY) surge in September car sales and record remittances of $2.8 billion for the month were the catalysts that lifted the market. Additionally, news of five independent power producers (IPPs) agreeing to early termination of power purchase agreements also helped improve the market outlook. Consequently, the bourse erased all losses and ended trading with thin gains.