The Pakistan Stock Exchange (PSX) saw a sharp decline on Tuesday, with the benchmark KSE-100 index down over 1,500 points, a day after its record high of 4,411 points.
This sharp decline was due to profit-taking activities.
The KSE 100 index closed down 1,509 points at 112,414 points. Throughout the trading session, the market saw a high of 115,036.49 points and a low of 112,294.42 points.
Trading volume stood at 352,683,905 shares, indicating a moderate level of market participation.
The total value of traded shares was around Rs 41.33 billion, showing a decrease compared to the previous active trading sessions.
Earlier on Monday, the Pakistan Stock Exchange (PSX) The KSE-100 index saw a significant rally, gaining 4,411 points (4.03%), to 113,924.42.
The bullish movement was driven by falling government bond yields, lower lending rates, and easing political tensions, particularly the ongoing negotiations between the government and the opposition.
Strong economic indicators such as rising exports, remittances and foreign exchange reserves also played a key role in boosting investor confidence.
The rally was massive, with major sectors such as oil and gas, fertilizers, and power contributing to the market’s recovery.
A total of 858 million shares were traded with a total value of 50 billion rupees. Key stocks such as Oil and Gas Development Company, Engro Corporation, and Fuji Fertilizer Company gained.
Analysts attributed the increase to falling lending rates and lower government bond yields, as well as improved political stability.
The market’s recovery came after a volatile week, with speculation that selling of local funds had eased.