Monday morning brings 3,000 points hike for PSX

KARACHI: The Pakistan Stock Exchange (PSX) grew by 3,000 points on Monday morning, with an almost instant jump of 1,400 points right after opening.

The benchmark KSE-100 index opened at Friday’s closing of 109,513.14 points, and in right off the bat jumped to 110,990.56 points. Since then, the index has accumulated twice as many gains, and around 11:30 AM, the index was hovering around 112,521.39 points, with over 3,000 points gains.

Last week saw severe fluctuations, and the steepest drop that the stock market has seen in weeks. Market experts attributed the volatility to the selling pressures caused by year-end profit targets of institutions as well as market correction after central bank’s policy rate revision. Overall, the index fell by nearly 4,800 points through the outgoing week.

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However, this loss was majorly contained by the Friday’s movement at the bourse, which saw the market recover 3,238 points before closing. Analysts are of the opinion that in both cases, of steep decline and sharp recovery, the market is behaving as per expectations.

The growth experienced by the KSE-100 index in the past several weeks is backed by strong macroeconomic indicators, including controlled inflation and strengthening foreign exchange reserves. The fluctuations are also part of the correction that kicks in after prolonged bullish periods.

Around 11:30 AM, the index looked like this: