The Pakistan Stock Exchange (PSX) witnessed a return of bearish trends on Monday, with the benchmark KSE-100 index losing over 300 points amidst political uncertainty.
The index could not sustain this momentum despite an initial gain of 402.07 points in the morning, reaching 65,039.70 points. By noon, it had rapidly shed its gains, closing at 64,269.37 points, down by 368.26 points or 0.57%.
Factors Influencing Market Fluctuations
Shahbaz Ashraf from FRIM Ventures attributed the brief rally to enthusiasm in energy sector stocks, spurred by news of a substantial reduction in circular debt. However, the proximity of upcoming elections and heightened trading activity contributed to the market’s volatility.
He noted that institutional investors largely remained inactive, awaiting clearer election information. Faran Rizvi of JS Global highlighted that the resolution of circular debt initially drove market activity but was later overshadowed by political factors. Raza Jafri from Intermarket Securities mentioned that the early gains were led by energy and bank stocks. All experts agree that political instability will continue to affect market trends.
