The Pakistan Stock Exchange (PSX) witnessed a robust trading session on Tuesday as the market rebounded strongly and shares surged nearly 1,400 points.
Despite recent bearish performances influenced by political unrest and the impact of reciprocal tariffs imposed by US President Donald Trump, which escalated fears of a potential global trade war, the market made a notable recovery. After a downturn over several sessions, the KSE-100 index embarked on a record-setting streak, climbing over 3,000 points to breach the 114,000 mark.
The rally began last week following the release of promising remittance data by the State Bank of Pakistan. The data showed a surge to $3 billion in January, representing an increase of over a quarter. This influx of remittances played a crucial role in buoying market sentiment.
Read: Pakistani Stock Market Faces Pressure Amid Global Trade Concerns
On Tuesday, the benchmark KSE-100 index experienced a significant rise, gaining 1,455.85 points to 345,519,481 points by 3:30 p.m., up from the previous session’s close of 111,743.53 points. The session concluded with the index at 113,088.47, marking an uplift of 1,344.94 points or 1.2 per cent.
While signs of economic recovery are evident, with increases in fuel consumption and motorcycle and auto sales, large-scale manufacturing sectors continue to show sluggish performance.
The release of the current account deficit and real effective exchange rate figures has also led some investors, including analyst Farooq, to anticipate a potential devaluation of the Pakistani rupee. If managed swiftly, such a devaluation could contribute to longer-term economic stability.
