PSX rebounds with a 3,200-point surge following a sharp decline

PSX rebounds with a 3,200-point surge following a sharp decline

The Pakistan Stock Exchange (PSX) experienced a notable rebound on Friday, with the KSE-100 index rising by 3.05%, closing at 109,513.14 points. During the session, the index peaked at 109,846.64 and dipped to 105,601.03, demonstrating strong positive momentum throughout the day.

The market saw a substantial recovery, adding 3,238.17 points, driven by a trading volume of 321,427,756 shares. This indicates robust investor participation and confidence in the market. The total value of shares traded reached around 29.56 billion, reflecting significant trading activity.

This recovery follows a sharp decline on Thursday, when the KSE-100 index plummeted by 4,795.32 points (4.32%), marking the largest single-day drop in its history. The sharp fall came after another notable drop of 3,790 points on Wednesday. The market downturn was largely attributed to domestic issues, such as the governmentโ€™s move to limit non-filers from investing in mutual funds, fears of the end of the monetary easing cycle, and ongoing political uncertainty.

The sharpest declines were seen in sectors such as chemicals, commercial banks, power generation, and refineries, alongside weak global oil prices, institutional selling, and investor profit-taking. Major stocks like Mari Petroleum, Hub Power, and United Bank were significant contributors to the drop.

Despite the recent setbacks, some analysts are optimistic that the market may experience short-term rallies due to the recent correction, providing potential buying opportunities. Trading volumes increased to 1.17 billion shares, with WorldCall Telecom, K-Electric, and Cnergyico PK leading the volume. Foreign investors were net sellers, offloading shares worth Rs1.40 billion.

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