PSX Experiences Volatility Following Record Highs

The Pakistan Stock Exchange (PSX) witnessed significant volatility in recent trading sessions, with the KSE-100 Index experiencing a sharp decline of 1,361.8 points, or 1.24%, to reach a low of 108,608.58 during intraday trading. This decline came after the index had reached a new intraday high of 111,000 points due to a rally of 1,482.06 points (1.35%). The rally was attributed to economic optimism, with inflation dropping to 4.9% in November, the lowest since April 2018. Additionally, remittances reached $14.8 billion during the first five months of FY2025, marking a 33.6% year-on-year increase. The upcoming State Bank of Pakistan monetary policy meeting on December 16 is expected to have significant implications for interest rates, which could further impact the PSX. The recent fluctuations in the PSX are a reflection of the complex economic landscape, with various factors influencing investor sentiment and market performance.