KSE-100 index gains over 3,000 points as bulls returns

After a bearish momentum last week, bulls continued to dominate the trading floor at the Pakistan Stock Exchange (PSX) as shares gained over 3000 points at the beginning of the trading day. 

The KSE-100 index hit 126,677 points at 11:53 am, indicating a change of 3,164 points in intraday trading, showing the growing interest of investors in Pakistan's economy.

The bullish trend showed a 2.87% positivity in the market, which had been on a negative trend last week, with a 4.37% decline week-on-week, closing at 109,513.14 points on Friday.

Earlier, PSX witnessed significant volatility during the week, with a large decline in shares due to various factors, including profit-taking, policy changes, and economic indicators. 

The week began with a gain of 1,867 points, following the State Bank of Pakistan (SBP) cutting the policy rate by 200 basis points to 13%, boosting investor confidence.

However, the rally could not stay long, as the reforms in the policies related to mutual funds and tax raised concerns among investors. 

By the end of the week, the KSE-100 index lost 4,789 points. 

The downturn was driven by a decline in key sectors, including oil and gas, fertilizer, cement, and banking. 

The week also saw foreign investors continuing to sell their holdings, particularly in exploration and production companies and banks. Local investors bought these shares from the foreign sellers, leading to a decline in trade volume and the devaluation of the rupee compared to the dollar.