PSX is making an astonishing rebound, passing over 97,000 points in intraday trading

The Pakistan Stock Exchange (PSX) witnessed a strong rally on Wednesday as political tensions eased in the capital following Pakistan Tehreek-e-Insaf’s (PTI) announcement to suspend its three-day protest in Islamabad.

This move significantly boosted investor sentiment, leading to a sharp increase in market activity.

The benchmark KSE-100 Index rose 3,740.84 points, or 3.96%, to close at 98,315.19 points after hitting an intraday high.

This marked a substantial recovery from the previous days of market volatility, attributed to the political unrest caused by PTI’s ‘do-or-die’ protest, which paralyzed parts of Islamabad since November 24.

The rally came in the wake of PTI’s decision to temporarily suspend the protest, bringing relief to investors who had been cautious due to the ongoing uncertainty.

Market analysts attributed the rebound to positive sentiment among investors, who saw opportunity in the previous session’s slump.

“This rally reflects growing optimism, likely driven by expectations of economic stability,” said a Karachi-based trader.

In a turbulent session at the Pakistan Stock Exchange (PSX) on Tuesday, the KSE-100 index recorded its biggest ever decline in a single day, falling by 3,506 points, or 3.57%, on rising concerns over political instability among investors.

Analysts attributed the political instability to the ongoing protests by the Pakistan Tehreek-e-Insaf (PTI), exacerbated by weakening investor sentiment and an outflow of foreign funds.

Despite strong banking sector performance, spurred by the State Bank of Pakistan’s (SBP) withdrawal of minimum deposit rate requirement for conventional banks, panic selling led to widespread losses across most sectors.