The Pakistan Stock Exchange (PSX) experienced great volatility on Monday, increasing by 1,347.55 points for an intra -day summit of 116,658.94 points before sliding from 620.75 points to drop to 114,848.59.
Samiullah Tariq, research manager at Pak-Kuwait Investment Company, said PK Press Club.tv that the drop in the market was due to the profits after the sharp increase earlier in the session.
The PSX had opened its doors, supported by positive developments during the weekend, in particular successful diplomatic efforts from Pakistan to the United Nations Security Council concerning Pahalgam attack.
This initially strengthened investors’ confidence, pursuit of the momentum compared to last week when tensions between Pakistan and India led to significant market volatility.
In addition, progress reports in American-Chinese trade negotiations have helped to mitigate the fears of a prolonged trade war, raising the feeling in the world’s stock markets, including Pakistan.
China, while denying the current pricing negotiations, has exempted certain American goods from reprisals, signaling a slightly softer position. He also called Washington to end the threats and pressure tactics to create an environment conducive to a dialogue.
“Improving international feeling has contributed to a positive atmosphere on local markets,” said Mustafa Mustansir, director of research and commercial development at Taurus Securities Limited, said previously PK Press Club.tv.
The positive image of Pakistan during the World Bank and SEMF meetings also supported the bullish feeling, alongside robust corporate profits. However, despite the initial overvoltage, investors have chosen to collect the gains by the end of the session, leading to the possible decrease in the market.
