PSX ends in red after wild market swings

KARACHI (Dunya News) – The Pakistan Stock Exchange (PSX) experienced a turbulent trading session on Tuesday, with the KSE-100 Index swinging sharply between gains and losses before ultimately closing in the red.

Trading began on a strong note, as investors showed renewed buying interest following Monday’s rally. The KSE-100 Index surged by over 500 points, hitting an intraday high of 167,984 points amid optimism about improving market fundamentals.

However, the early enthusiasm proved short-lived. As the day progressed, profit-taking and selling pressure emerged, erasing earlier gains. The index eventually settled at 166,553 points, down 793 points from the previous close.

A day earlier, the market had surged 1,103 points, ending Monday’s session at 167,346 points — one of the strongest rallies in recent weeks. But analysts said Tuesday’s decline reflected investors booking profits after consecutive gains.

Market experts attributed the downturn to a combination of global market volatility, domestic political uncertainty, and cautious investor sentiment. “After such a strong rally, it’s natural for investors to take a breather and lock in profits,” said a senior market analyst.

Despite the correction, analysts remain optimistic about the PSX’s medium-term outlook, citing improving macroeconomic indicators and stable foreign exchange reserves as potential drivers of growth in the coming weeks.