The Pakistan Stock Exchange (PSX) experienced a monumental rally with the benchmark KSE-100 Index rising by 9,926 points in one day on Monday.
After this monumental gain, the index reached a high of 117,104 points, for one of the largest increases in the market’s history for one day. In light of this unbelievable increase, the trading was suspended for one hour being as it fell under market volatility and precautionary parameters.
According to the market experts, the investors are showing confidence in the market due to the recent approval of the loan tranche by the International Monetary Fund (IMF), and the ceasefire between Pakistan and India after a brief escalation of military hostilities.
The stock market had a rough week, with the KSE-100 index falling 6,939 points or -6.1% week-on-week (WoW). The index closed near 107,000 points amid increasing geopolitical tensions between Pakistan and India.
The index had a slight recovery on Friday, but the overall trend was still bearish. On a day-on-day basis, the PSX had huge swings during the week, with the benchmark KSE-100 index closing almost flat as questions loomed over the State Bank’s uncertainty on policy amid rising tensions with India.
The KSE–100 had a bad first half to the day, as it was down, at one stage, over 1,036 points. In the end, the KSE-100 index closed down just 11.70 points to 114,102.
Tuesday was a lower day, with the index declining 534 points, when the optimism regarding the State Bank 100bps rate cut was gone and tension between Pakistan and India became front and centre again, along with a warning from Moody‘s regarding economic stability.
