Stock market stays bullish despite periodic downturns

KARACHI: The stock market experienced significant volatility in the early hours of Tuesday, showcasing a dynamic start to the trading day.

Opening with a robust gain of over 600 points, Pakistan Stock Exchange (PSX) quickly reversed course, plummeting by 779 points and settling at 64,554.65 points around 11 AM, marking a 100-point dip from the opening figure.

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This fluctuation follows a positive trend set at the beginning of the new year, with the PSX reflecting optimism after a recovery surge on Friday. On New Year’s day, the market commenced at 62,451.04 points, rallying over 1,000 points to conclude at 64,661.78 points on Monday. This upward trajectory follows a period of considerable market correction in the preceding week and the week before.

Throughout the trading day yesterday, the benchmark KSE-100 index exhibited volatility, posting gains exceeding 2,000 points before stabilising.

Market observers find the recent improvements in the stock market encouraging for both traders and investors. Analysts attribute this positive momentum to substantial institutional buying over the past few trading days, contributing to an overall optimistic investor sentiment.

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Energy stocks took the lead in yesterday’s market rally, with analysts noting that the surge was primarily driven by a renewed focus on addressing circular debt by the authorities.

Additionally, the ongoing recovery of the Pakistani rupee and a decline in government bond yields have further supported the upward trajectory, reinforcing the market’s resilience.