KARACHI: The Pakistan Stock Exchange (PSX) witnessed severe volatility during trading on Tuesday, as a result of which the benchmark PSX-100 index closed at 113,568 points, down by 533 points.
At the start of trading, the index increased by 990 points and reached a high of 115,093 points. However, a bearish trend prevailed in the market due to a profit-taking trend by investors during the day.
According to analysts, the major reason for this downturn in the market is the increasing geographical tension between India and Pakistan, especially after the Pahalgam attack. Indian Prime Minister Narendra Modi’s 40-minute meeting with Air Chief Marshal VR Chaudhari caused anxiety among investors, which negatively impacted the market.
In addition, the unexpected reduction of 100 basis points in the policy rate by the State Bank of Pakistan, which was brought down to 11%, initially had a positive impact on the market. However, by the end of the day, the effect faded and the market closed in the negative zone.
