The Pakistan Stock Exchange (PSX) witnessed a notable downturn as the benchmark index suffered a substantial loss of over 1,000 points during intraday trading on Thursday. The KSE-100 index, as reported by the PSX website, experienced a depreciation of 1.82%, dropping by 1,133.79 points to reach a level of 61,020.05 by 3:44 pm.
Contrastingly, the market had displayed a positive trend on the preceding Wednesday, with the benchmark index surging by more than 900 points. This upswing was attributed to a newfound clarity on the political front, providing investors with a sense of reassurance. Topline Securities characterized Wednesday’s market activity as “a day with some sigh of relief.”
The trading day commenced on a positive note, and this positive momentum persisted throughout the session, resulting in the market closing at 62,154 levels with a substantial gain of 927 points, equivalent to a 1.51% increase. Topline Securities explained that the heightened buying activity on that day could be attributed to the clarification provided by major political parties regarding the formation of a new government. These parties had reached an agreement and conveyed details about the upcoming coalition setup during a press conference held the day before.
The volatility in the stock market underscores the sensitivity of financial markets to political developments, as investors closely monitor and react to shifts in the political landscape. The contrasting trends over the two consecutive days highlight the influence of external factors on market sentiment and underscore the need for a comprehensive understanding of the broader economic and political environment for effective investment decision-making.
