By Eman Alam
ISLAMABAD: The Pakistan Stock Exchange (PSX) witnessed a sharp rally on Monday, fuelled by a combination of positive developments, including a ceasefire between Pakistan and India, and the International Mone-tary Fund’s (IMF) approval of a key financial package.
The benchmark KSE-100 Index surged by 10,123 points, marking the largest single-day gain in the ex-change’s history. By the end of the trading session, the benchmark index closed at 117,297.73.
The index was up more than 9% from the previous close of 107,174.63 points during intra-day trading, prompting a temporary suspension of trading under 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 345.3 million shares in volume with a turnover exceeding Rs21.98 billion.
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.
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 quick-ly 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 con-tributed 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.
