Karachi (Newsman): As political tensions in the capital subsided after Pakistan Tehreek-e-Insaf (PTI) said it would halt its three-day protest in Islamabad, the Pakistan Stock Exchange (PSX) saw a robust gain on Wednesday.
The action sharply increased market activity by improving investor mood.
After reaching an intra-day high, the benchmark KSE-100 Index jumped 3,740.84 points, or 3.96%, to close at 98,315.19 points.
This was a significant improvement over the days of market turbulence produced by the political turmoil brought on by the PTI’s “do-or-die” protest, which had paralyzed parts of Islamabad since November 24.
Also read: PSX Gains 1,500 Points Despite Political Unrest and PTI Protest
PTI’s decision to temporarily halt the protest followed the rally, which relieved investors who had been wary because of the continued uncertainty.
According to market observers, the increase was caused by investors’ optimistic outlook after they saw possibilities in the previous session’s decline.
The KSE-100 index saw its biggest-ever single-day decline during a tumultuous session at the Pakistan Stock Exchange (PSX) on Tuesday, plunging 3,506 points, or 3.57%, as investors’ concerns about political instability grew.
Analysts blamed the political unrest on the Pakistan Tehreek-e-Insaf’s (PTI) continuous protests, which were made worse by declining investor sentiment and the withdrawal of foreign funds.
Also read: PSX Surges to Record High of 96,344 Points, Up by 494 Points
The State Bank of Pakistan’s (SBP) decision to remove the minimum deposit rate requirement for conventional banks prompted the banking industry to perform well. However, panic selling caused losses in most industries.