The Pakistan Stock Exchange (PSX) witnessed major volatility on Monday, initially surging 1,347.55 points to an intraday high of 116,658.94 before paring gains and falling by 1304.78 points to 114,164.56 during trading hours.
Samiullah Tariq, Head of Research at Pak-Kuwait Investment Company, told Thenews.com.pk that the market decline was due to profit-taking after the sharp rise earlier in the session.
The PSX had opened strongly, buoyed by positive developments over the weekend, including Pakistan’s successful diplomatic efforts at the United Nations Security Council regarding the Pahalgam attack.
This had initially boosted investor confidence, continuing momentum from last week when tensions between Pakistan and India led to significant market volatility.
Additionally, reports of progress in US-China trade negotiations helped ease fears of a prolonged trade war, lifting sentiment across global equity markets, including Pakistan’s.
China, while denying ongoing tariff negotiations, exempted some US goods from retaliatory tariffs, signalling a slightly softer stance. It has also called for Washington to end threats and pressure tactics to create a conducive environment for dialogue.
“The improvement in international sentiment contributed to a positive atmosphere in local markets,” Mustafa Mustansir, Director of Research and Business Development at Taurus Securities Limited, had earlier told Thenews.com.pk.
Pakistan’s positive image at the World Bank and IMF Spring Meetings also supported bullish sentiment, alongside robust corporate earnings reports. However, despite the initial surge, investors opted to cash in gains by the end of the session, leading to the market’s eventual decline.
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