PSX is at last beginning to bounce back

KARACHI: The Pakistan Stock Exchange (PSX) posted a 353.99 point gain by 11 AM on Friday, carrying over the positive sentiment that had been established on Thursday. The market opened at 62,052.23 on the last trading day of the week and was seen to be hovering around 62,406.22 points at noon.

Read More: PSX rises sharply on expectations for an IMF loan

Due to profit-taking and market corrections, which accounted for the majority of trading activity over the course of the five days last week, the PSX saw significant fluctuations.

After the holiday on Monday this week, the index opened on Tuesday with a bearish outlook and fell more than 1,200 points in the first two hours of trading. Wednesday continued in the same erratic vein, although by midday it had partially recovered from the previous day’s losses. By the end of the day, the index had increased by 1,189 points to close at 62,052.

Read More: PSX sees biggest single-day decline

The benchmark KSE-100 index saw a significant increase on Thursday, closing over 62,000 with a gain of almost 1,200 points. Notable institutional buying supported the market significantly, which added to the positive investor sentiment.

The bullish trend that has persisted is attributed by market analysts to institutional buying, which is motivated by year-end concerns and the declining yields on government bonds due to expectations of reduced interest rates and inflation.

The upward momentum was further reinforced by the Pakistani rupee’s ongoing recovery and a drop in the yield on government bonds.