The Pakistan Stock Exchange saw a strong rebound on Tuesday as the KSE-100 index climbed 1,804.59 points during intraday trading, recovering from a sharp meltdown the previous day. By 12:19pm, the benchmark index stood at 148,647.56, up 1.23 per cent from Monday’s close of 146,842.97.
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On Monday, the market faced extreme selling pressure, dragging the KSE-100 below the 145,000-point mark intraday. It recorded an intraday low of 144,656.97, a steep decline of 7,050.55 points, and closed 4,864.54 points lower than the previous session. The sell-off was attributed to heightened geopolitical tensions and cautious investor sentiment, which limited market momentum.
Ali Najib, Deputy Head of Trading at Arif Habib Ltd, noted that this marked the seventh consecutive Monday, excluding March 23, in which the market experienced substantial sell-offs since February 9. He added that investor participation remained cautious, contributing to increased volatility.
Despite the volatility, positive developments last week provided a boost to market sentiment. The International Monetary Fund (IMF) reached a Staff-Level Agreement with Pakistan, paving the way for the release of due tranches under two ongoing programmes. This news helped restore confidence among investors, contributing to the KSE-100’s recovery on Tuesday.
Market analysts caution that while the rebound is encouraging, geopolitical developments and global economic factors could continue to influence market performance. Traders are advised to monitor developments closely and exercise prudence.
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The Pakistan Stock Exchange continues to demonstrate resilience, reflecting investor optimism in response to favourable economic policy announcements and international support, even amid periods of heightened uncertainty.