The Pakistan Stock Exchange (PSX) witnessed a sharp rally on Monday as geopolitical tensions between Pakistan and India showed signs of easing.
The benchmark KSE-100 index surged by 9,928 points during intra-day trading, reaching 117,104.11 points — marking the largest single-day increase in index points on record.
The index was up more than 9% from the previous close of 107,174.63 points, prompting a temporary suspension of trading in accordance with market regulations triggered by extreme fluctuations.
Market analysts attributed the rally to improved investor sentiment following the announcement of a ceasefire between the two neighbouring countries, easing concerns over further escalation.
According to PSX data, the market had recorded over 60 million shares in volume with a turnover exceeding Rs4.37 billion by the time of the suspension.
The market resumed trading at 10:42 am.
The stock market endured a turbulent week, with the KSE-100 index plunging 6,939 points, or -6.1% week-on-week (WoW), to close near 107,000 amid rising geopolitical tensions between Pakistan and India.
Despite a partial rebound on Friday, the broader trend remained bearish.
Read more: https://tribune.com.pk/story/2545139/psx-sinks-6939-points-amid-tensions
On a day-on-day basis, the PSX witnessed a turbulent start to the week, with the benchmark KSE-100 index closing nearly flat amid rising tensions with India and State Bank’s policy uncertainty. The index dipped steeply in early trading, falling 1,036 points. At close, the KSE-100 recorded a decline of just 11.70 points and settled at 114,102.
On Tuesday, the bourse closed lower as investor optimism over the State Bank’s 100bps rate cut quickly gave way to concerns over escalating Pakistan-India tensions and Moody’s warning about economic stability. The index recorded a decline of 534 points.
The market continued its downtrend and experienced a turbulent start to Wednesday’s session, with the index nosediving over 6,500 points shortly after the open over heightened border tensions.
The market staged a robust recovery on Friday, where the benchmark index surged around 3,650 points, trimming some of Thursday’s steep losses.
The market closed the week at 107,175, plunging 6,939 points, or -6.08% WoW. Sector-wise, negative contributions came from banks (1,637 points), exploration and production (905 points), cement (738 points), technology (508 points) and pharmaceuticals (436 points). Meanwhile, the sector that contributed positively was sugar (7 points).
In its review, Arif Habib Limited (AHL) wrote that the KSE-100 index remained mostly in the red during the outgoing week amid mounting geopolitical tensions and concerns over further escalation.
