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On Friday, the Pakistan Stock Exchange (PSX) saw a notable rally, with the KSE-100 index rising by approximately 575.92 points, or 0.73%, to reach 78,450.14 during early trading. This upward movement follows a period of significant volatility and a substantial dip earlier in the week.
Last Monday, the KSE-100 index experienced a dramatic drop of 1,141 points during intra-day trading, driven by a global equity sell-off. This sell-off was fueled by concerns about a potential US recession and escalating tensions in the Middle East, which contributed to a bearish trend in the market.
Several factors exacerbated the downturn, including a weakened rupee, a decline in global crude oil prices, and fears about the impact of a possible US recession on Pakistan’s exports. Investor sentiment was further complicated by political uncertainty, potential policy rate cuts, global rating agency decisions, and mixed economic data.
Despite these challenges, the PSX managed to recover slightly in Tuesday’s trading session. The recovery was supported by gains in second and third-tier shares, driven by a rebound in global equities and strong corporate earnings reports. The market managed to recoup some of its earlier losses, ending the day above the 77,000 mark with modest gains of over 100 points.
Trading volumes saw an increase, reaching 600.9 million shares compared to Monday’s 501.2 million shares. The total value of shares traded during the day amounted to Rs17.1 billion.
The PSX had previously achieved an all-time high of 81,000 points last month, reflecting the market’s capacity for significant gains despite ongoing volatility.
