KSE-100 Index Rebounds Following Political Uncertainty

The KSE-100 Index experienced a notable recovery on Tuesday, rebounding by over 1.3% after a sharp decline of approximately 2% the previous day. The index, which had been under pressure due to rising political uncertainties, showed resilience early in the trading session.

By 11:49 AM, the benchmark index of the Pakistan Stock Exchange (PSX) was trading around 79,074.63, reflecting a gain of 535.45 points, or 0.68%. This followed an intraday high of 79,578.04. On Monday, the KSE-100 had plummeted by 1,578.71 points, or 1.97%, driven by growing political tensions and speculations about a potential ban on the Pakistan Tehreek-e-Insaf (PTI) party and its key figures, including founder Imran Khan, former president Arif Alvi, and former deputy speaker Qasim Suri.

Market analysts attributed Monday’s decline to both political unrest and the natural market correction following a prolonged rally. The index had surged to 81,839.86 on July 18, driven by positive economic signals and investor optimism.

Despite the recent volatility, the PSX has seen a substantial gain of 22.97% this calendar year. This uptrend has been fueled by expectations of a new IMF programme and recent interest rate cuts, including a 1.5% reduction in borrowing costs announced on June 10.