PSX loses over 1500 points on profit-taking

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The Pakistan Stock Exchange (PSX) experienced a significant decline on Tuesday, with the benchmark KSE-100 Index dropping by over 1,500 points, a day after its record gain of 4,411 points.

This sharp fall was driven by profit-taking activities.

The KSE-100 index lost 1,509 points to close at 112,414 points. Throughout the trading session, the market saw a high of 115,036.49 points and a low of 112,294.42 points.

The trading volume stood at 352,683,905 shares, indicating a moderate level of market participation.

The total value of shares traded amounted to approximately Rs41.33 billion, showing a decrease compared to previous active trading sessions.

Earlier on Monday, the Pakistan Stock Exchange (PSX) saw a significant rally, with the KSE-100 index surging by 4,411 points (4.03%), reaching 113,924.42.

The bullish movement was driven by falling government bond yields, declining lending rates, and easing political tensions, particularly the ongoing talks between the government and opposition.

Strong economic indicators such as rising exports, remittances, and foreign exchange reserves also played a key role in boosting investor confidence.

The rally was widespread, with major sectors like oil and gas, fertiliser, and power contributing significantly to the market's recovery.

A total of 858 million shares were traded, with a total value of Rs 50 billion. Key stocks like Oil and Gas Development Company, Engro Corporation, and Fauji Fertiliser Company led the gains.

Analysts attributed the surge to falling lending rates and a decline in government bond yields, as well as improving political stability.

The market's recovery came after a volatile week, with speculation that selling by local funds had subsided.