 saw an enormous jump on Monday after a signal of diminishing tensions between Pakistan and India.){kind=link}
The Pakistan Stock Exchange (PSX) saw an enormous jump on Monday after a signal of diminishing tensions between Pakistan and India. The KSE-100 index benchmark rose intra-day by a record 9,928 points to a day’s high of 117,104.11 points. This was the largest one-day movement in index points ever.
The index rallied more than 9% from its last close of 107,174.63 points. The resultant steep rise halted trade momentarily as the market’s regulations during runaway fluctuation made provision for.
Experts attributed the increase to happen after investors took on a rosier outlook, post-newspapers breaking news on Pakistan and India observing a ceasefire. This put less fear of escalating hostilities between the countries.
According to statistics from PSX, over 60 million shares were traded, and turnover was more than Rs4.37 billion before trading stopped. Trading recommenced at 10:42 am.
In the morning session, the stock market had an eventful day. The KSE-100 index had shed 6,939 points, or 6.1% week-on-week, closing nearly 107,000. That was mainly due to growing tensions between Pakistan and India.
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Though on Friday, there was a recovery partially, overall trends remained negative. On a day-to-day basis, the PSX had a shaky start to the week. The KSE-100 index closed almost flat after dropping 1,036 points in early trading. By the end of the session, the index was down by just 11.70 points, closing at 114,102.
On Tuesday, the market dipped once more. Hopes of investors after State Bank’s 100bps rate cut evaporated due to rising Pakistan-India tensions and a threat by Moody’s regarding economic stability. The index shed 534 points on that day.
The trend fell on Wednesday. The market opened with a sharp dip, losing more than 6,500 points on account of higher border tensions.
The market recovered strongly on Friday. The KSE-100 index surged around 3,650 points, undoing some of Thursday’s huge losses. Despite that, the week ended with a cumulative decline of 6,939 points or 6.08%.
The index remained predominantly in the red during the week due to geopolitical concerns and the specter of increased conflict, said Arif Habib Limited (AHL).
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