PSX plunges 1,200 points but makes a quick recovery

KARACHI: The Pakistan Stock Exchange (PSX) dropped 1,300 points moments into opening on Tuesday, and went to 114,868.63 points, after opening at 116,169.41 points. Soon after, the benchmark KSE-100 index recovered to 116,088.61 points.

However, that recovery proved to be short-lived again, and by 10 AM, the KSE-100 had once again fallen to 115,849.30 points. The volatility experienced by the bourse in the early trading hours of Tuesday seems to be a correction of the market after multiple consecutive sessions of bullish momentum.

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The market had been growing on the expectations of the State Bank of Pakistan (SBP) reducing the policy rate, which the central bank did yesterday. The policy rate has been slashed by 200 basis points – a move that the SBP had been delaying in order to control inflation. With that out of the way, the PSX now found time to correct some of the heat and adjusted the overall growth.

The market, however, is expected to soon stabilise and continue the positive growth. At 10 AM, the KSE-100 index had once again turned the tide, looking like this: