KARACHI: In a dramatic turnaround, the Pakistan Stock Exchange (PSX) experienced a bullish surge on Wednesday, with the benchmark KSE-100 index climbing over 1,000 points during early morning trading.
As soon as the political parties united to form the government on Tuesday evening, the index soared by 1,040.65 points or 1.70%, reaching 62,267.57 points, a significant increase from the previous day’s closing of 61,226.93 points.
The market’s resurgence follows a turbulent period marked by political uncertainty, which initially drove the KSE-100 index below the critical 60,000 level within the first 15 minutes of trading on the preceding day.
However, investors staged a remarkable comeback, aggressively buying oversold stocks in late trading, propelling the index up by over 1,600 points from its intraday low. Ultimately, the index closed marginally higher at 61,226.93 points, recording a gain of 161.61 points or 0.26% from the previous session.
Analysts attribute the market’s fluctuations to the ongoing uncertainty surrounding the formation of a new government. Nevertheless, the recent rebound of the KSE-100 index underscores the adaptability of market participants in navigating volatile political and economic landscapes.
The PSX witnessed a tumultuous two-day sell-off following the February 8 general elections, during which the benchmark index dipped below the 60,000 mark.
Khurram Schehzad from Alpha Beta Core had previously linked this downward trajectory to apprehensions regarding the formation of the new government.
