The Pakistan Stock Exchange (PSX) plunged over 500 points on Tuesday, failing to continue its upward trajectory despite crossing the 137,000 barrier in intra-day trading.
The benchmark KSE-100 index rose by 1,237.03 points, or 0.91 per cent, to stand at 137,739.56 points at 11:39am, from the previous close of 136,502.53 points.
Finally, it closed at 135,939.87 points — dropping 562.66 points, or 0.41pc, from yesterday’s close.
The market had opened on a positive note, rising by 1,205.1 points, or 0.88pc, to reach 137,707.63 points at 9:45am. It then dropped to 136,498.16 points at 10:15am before regaining its bullish momentum.
Earlier today, Samiullah Tariq, head of Research and Development at Pakistan Kuwait Investment Company Ltd, had attributed the early gains to strengthened macroeconomic indicators.
“Improvement in macroeconomic indicators and better result expectations, especially in commercial banks, is the primary reason for the increase in the [stock] market,” he told Dawn.com.
Awais Ashraf, research director at AKD Securities, said: “Investors are booking profits in companies that posted significant returns during the recent bull run, while delays in clarity regarding the clearance of circular debt payments have kept energy sector stocks under pressure.”
He said the recent rally was “likely to continue, supported by attractive stock valuations and expectations of further monetary easing”.
Yesterday, the PSX had continued its upward trend from last week, crossing the 136,500 level due to value-hunting by investors and optimism over strong corporate earnings.
The rally was supported by active participation from local mutual funds and institutional investors.
A surge in workers’ remittances, robust auto sales, and improved foreign exchange reserves provided a solid backdrop for investor optimism, helping offset subdued participation and minor currency depreciation.
Workers’ remittances rose to a historic $3.4bn in June, up 8pc year-on-year, taking full-year FY25 inflows to a record $38.3bn — a 27pc increase over the previous year. The State Bank of Pakistan’s foreign exchange reserves surged by $1.8bn to $14.5bn for the week ending July 4, marking a 39-month high.
The previous week saw the stock market continue its record-breaking bullish run, crossing the 134,000-point threshold amid strong macroeconomic fundamentals and persistent buying by local mutual funds.
