KSE-100 index rebounds over 9,300 points, triggers market halt

ISLAMABAD: Pakistan’s benchmark KSE-100 index surged by 9,303.75 points, or 6.35 per cent, during early trading on Tuesday, prompting a temporary suspension of trading at the Pakistan Stock Exchange (PSX). The sharp rally activated the exchange’s market halt mechanism, as outlined in an official notice issued by the PSX.

According to the notification, the halt was triggered after the KSE-30 index registered a 5 per cent increase from the previous trading day’s close. This automatic suspension is part of the PSX’s regulatory framework designed to manage significant market volatility. Trading was paused and later resumed at 10:27am, as per the schedule shared by the exchange.

This significant rebound follows a steep decline in the market a day earlier. On Monday, the KSE-100 index had closed at 146,480 points, having dropped 11,015 points or 6.99 per cent. This marked the second-largest single-day fall in the index’s history and resulted in losses exceeding Rs1.09 trillion for investors.

The sharp turnaround in the market comes a day after the State Bank of Pakistan (SBP) announced its decision to maintain its key policy rate. The SBP’s announcement appears to have contributed to renewed investor confidence, leading to the substantial gains observed in Tuesday’s session.

The PSX’s market halt mechanism is designed to provide a cooling-off period during periods of extreme volatility, ensuring orderly trading and protecting investors from abrupt market movements. The events of the past two days underscore the volatility currently present in Pakistan’s equity markets.

Market participants will be closely monitoring further developments, particularly in light of recent policy decisions and their impact on investor sentiment and market stability.