The Pakistan Stock Exchange (PSX) experienced a significant rally on Wednesday as political tensions in Islamabad eased following Pakistan Tehreek-e-Insaf’s (PTI) decision to suspend its three-day protest in the capital.
This development boosted investor confidence, triggering a surge in market activity. The benchmark KSE-100 Index soared by 3,740.84 points, or 3.96%, to close at 98,315.19 points, reaching an intra-day high during the session.
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The rally marked a notable recovery after days of market volatility caused by PTI’s intense “do-or-die” protest, which had disrupted parts of Islamabad since November 24. PTI’s announcement to pause the protest brought relief to investors wary of the prevailing uncertainty.
Market experts credited the rally to improved investor sentiment, seeing the market downturn from the previous session as a buying opportunity. A trader from Karachi noted that the surge reflected increased optimism, likely stemming from expectations of economic stability.
On the other hand, Tuesday witnessed one of the most turbulent sessions at PSX, with the KSE-100 index experiencing its steepest single-day drop, falling 3,506 points or 3.57%. This decline was attributed to heightened political instability, primarily driven by PTI’s ongoing protests, declining investor confidence, and foreign capital outflows.
Despite a strong showing by the banking sector—supported by the State Bank of Pakistan’s (SBP) decision to remove the minimum deposit rate requirement for conventional banks—panic selling resulted in widespread losses across most sectors.
