The massive buying spree at the Pakistan Stock Exchange (PSX) came to an end on Tuesday, as the KSE-100 Index dropped by over 1,000 points amid profit-taking.
The session started off strong, with the index reaching an intra-day high of 111,759.58, up by more than 1,700 points. However, as the day progressed, investors began cashing in on their gains, causing the index to fall to a low of 107,711.40 by 2:40 PM. At the close, the index ended at 108,896.65, down by 1,073.73 points or 0.98%.
The early rally was driven by investor interest in key sectors, including power generation, oil and gas, refineries, fertilizers, automobile manufacturers, and cement, fueled by improving macroeconomic indicators, particularly strong remittance inflows. According to the State Bank of Pakistan, remittances in November 2024 amounted to $2.92 billion, a 4.5% decrease from October 2024.
Optimism around potential interest rate cuts, following a drop in inflation to 4.9% in November, also played a role in driving investor sentiment. However, experts anticipated some profit-taking after the recent record highs.
Meanwhile, stock markets in China and Hong Kong surged, following announcements of increased policy stimulus to boost growth. The CSI300 index in China rose by 3.2%, and Hong Kong’s Hang Seng jumped by 3.2%, continuing strong momentum from the previous day.
