Despite periodic downturns, the stock market remains bullish

KARACHI: The stock market saw significant volatility in the early hours of Tuesday, indicating a volatile start to the trading day.

After opening with a strong gain of over 600 points, the Pakistan Stock Exchange (PSX) quickly reversed course, falling by 779 points and settling at 64,554.65 points around 11 a.m., a 100-point drop from the opening figure.

This fluctuation continues a positive trend established at the start of the new year, with the PSX reflecting optimism following a recovery surge on Friday. On January 1, the market opened at 62,451.04 points before rallying over 1,000 points to close at 64,661.78 points on Monday. This upward trend comes after a period of significant market correction in the previous week and the week before.

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The benchmark KSE-100 index was volatile throughout the trading day yesterday, posting gains of over 2,000 points before stabilizing.

Market observers believe that recent stock market gains are encouraging for both traders and investors. Analysts attribute this positive momentum to significant institutional buying in recent trading days, which has contributed to an overall positive investor sentiment.

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Energy stocks led yesterday’s market rally, with analysts noting that the surge was primarily driven by the authorities’ renewed focus on addressing circular debt.

Furthermore, the ongoing recovery of the Pakistani rupee and a decline in government bond yields have aided the upward trend, reinforcing the market’s resilience.