Lack of economic agenda tests PSX

The Pakistan Stock Exchange (PSX) has experienced a tumultuous ride, mirroring the frenzy leading up to the upcoming general elections. The once-positive election fervour has morphed into election anxiety, temporarily shattering short-term business confidence, despite the prevailing promising medium-to-long-term outlook. The KSE 100 Index, a benchmark for PSX, witnessed a remarkable 27% surge since the announcement of the election date in the first week of November 2023. Scaling unprecedented heights, it peaked at over 67,000 in mid-December 2023. Scheduled for the next week on February 8, 2024, the parliamentary polls initially ignited a rally fuelled by optimism surrounding early signs of economic recovery and the anticipated substantial rise in low-priced stocks across the board. However, as the year 2023 drew to a close, investors chose to sell stocks to secure profits. Unfortunately, this trend failed to be accompanied by renewed buying, leading to an almost 8% decline from the all-time high. The index hit a one-month low at 61,842 points on January 30, 2024.