Pakistan Stock Exchange Witnesses Sharp Recovery After Massive Intraday Slump
KARACHI: In early sessions, the Pakistan Stock Exchange (PSX) had some very rough trading and a significant sell-off, but a market recovery enabled the benchmark index to retest the key 168,000 point level once more.
The benchmark KSE-100 index began the first half session sharply down by dropping more than 1,000 points. The day’s sell-off deepened on the day, with the index dropping by up to 2,700 points to reach an intraday low just above the 166,000-point mark.
They did fall and make substantial bottoms when the market broke below 167,000 and 168,000 points during the worst of the bearish markets.The purchasing interest was, however, less intense, and thus a decisive turn-around was provoked. After a dramatic fall of 2,700 points, the market rallied 2,100 points to put the bourse on a firmer footing at the day’s end.Market analysts pointed out that the market turbulence was largely caused by external economic shocks, especially the Global Oil Shock and the Geopolitical Pressures.
International commodity markets have been very volatile due to increased geopolitical tension and continuing conflict in the Middle East.Concerns over the continuing supply disruptions drove another massive rise in global crude oil prices.
As trading sessions rolled on, benchmark Brent crude rallied by as much as 7.1 percent, with international trading values climbing to as high as $108 per barrel. More general concerns have been voiced about the potential for further disruptions to global energy flow to affect emerging markets and inflation dynamics at home.