PSX jumps, then falters as profit-taking kicks in

KARACHI: The Pakistan Stock Exchange (PSX) crossed the 96,000 points mark early in the day, touching the morning’s highest at 96,711.33 points around 11 AM. The index had climbed nearly 900 points, when the political noise kicked in the profit-taking, causing most of the morning’s gains to reverse by the noon.

Around 3 PM, the benchmark KSE-100 index had declined below the opening level of 95,856.66 points, to trade around 95,696.28 points.

The recent notable improvement in the macroeconomic indicators has propelled the stock market to historic highs. The assurances by Finance Minister Muhammad Aurangzeb on the success of International Monetary Fund’s (IMF) mission, as well as confirmation of no additional taxes on salaried class had a positive impact on the investor confidence.

Likewise, the improving external outlook of the Pakistan’s economy and the incoming foreign exchange helped improve the investment inflow from foreign investors.

However, Wednesday saw increased political heat owing to the upcoming protest announced by the opposition party for the coming weekend. The political instability also translated into trading frenzy that led to profit-taking. Towards the afternoon, the index was showing 218.56 points decline already, from the opening position.

Also read: Stock market likely to surpass 96,000 points today, again!