PSX shrugs off slump, rallies by around 650 points

The Pakistan Stock Exchange (PSX) has shrugged off its downward slump on Thursday and surged by 667 points to reach 78,545 during intra-day trade.

This marks a notable 0.85% rise from its previous close of 77,878 points.

Ahead of the August 14 Independence Day holiday, the PSX fell over 100 points in a range-bound session on Tuesday, marked by growing political uncertainty and economic concerns.

Scores of factors drove the market's decline including doubts about the proposed closure of independent power plants (IPPs), potential reduction in the Public Sector Development Programme (PSDP), geopolitical uncertainties, a weak rupee, and a significant 36% month-on-month (MoM) drop in auto sales.

Read Foreign investment at PSX plummets

The PSX had earlier surged to new heights last month and stood at an all-time high of 81,156 points, showcasing a bullish momentum in the market.

Experts attributed the bullish trend to various factors including the privatization and staff-level agreement with the International Monetary Fund (IMF).