The Pakistan Stock Exchange (PSX) experienced a significant rebound on Friday, with the KSE-100 Index rising by over 2,800 points in early trading. This surge was driven by renewed optimism following easing geopolitical tensions and positive signals from international markets.
By 10:45am, the index had climbed to 114,183.67, reflecting an increase of 2,857.10 points or 2.57%. This marked one of the strongest single-day recoveries in recent weeks.
Read more: PSX Suffers Major Setback As Geopolitical Fears Trigger Massive Sell-Off
Broad-based buying was observed across various sectors, including automobile, cement, chemicals, commercial banks, oil and gas exploration, oil marketing companies, power generation, and refineries. Key index-heavy stocks like OGDC, PPL, PSO, MARI, HUBCO, HBL, and NBP all showed positive movement.
The rally followed a recent slump earlier in the week, sparked by heightened tensions between Pakistan and India after the militant attack in Indian-occupied Jammu and Kashmir (IIOJK). However, US Secretary of State Marco Rubio’s appeal for de-escalation appeared to boost investor sentiment. Additionally, expectations of an interest rate cut by the Monetary Policy Committee (MPC) in their upcoming meeting and lower inflation predictions also helped lift market confidence.
Global market trends further supported the rally, with Asian stock markets showing gains and US futures recovering after comments from China’s commerce ministry indicating renewed trade talks with Washington. Oil prices continued to rise after former US President Donald Trump threatened secondary sanctions on Iran, while gold prices slipped as demand for safe-haven assets waned.
The KSE-100 Index not only bounced back but also crossed key psychological thresholds, briefly reaching 114,242 before stabilizing. This recovery to levels of 112,000, 113,000, and 114,000 demonstrated increased investor confidence after a period of uncertainty. However, market participants remained cautious, noting that the sustainability of the rally will depend on future geopolitical and economic developments.
