The Pakistan Stock Exchange (PSX) made a strong recovery on Thursday, with the KSE-100 Index climbing by nearly 1,800 points during early trading, partially offsetting the heavy losses recorded the previous day.
By 9:35am, the index stood at 111,791.53 points, marking a gain of 1,782.51 points or 1.62%. The rally reflected widespread investor confidence, fueled by cautious optimism and buying activity across multiple sectors, including automobiles, cement, banking, oil and gas, and energy.
Read more: PSX Sees Boost After Central Bank Rate Cut
This rebound came amid hopes of reduced military tensions between Pakistan and India following one of the most intense cross-border conflicts in recent decades. A day earlier, the market had tumbled by over 3,500 points in response to escalating hostilities.
Leading companies such as HUBCO, ARL, MARI, OGDC, POL, PSO, SSGC, NBP, and UBL showed positive momentum. The recovery followed a brief pause in the fighting that had seen deadly missile strikes and air attacks on Pakistani regions like Bahawalpur, Kotli, and Muzaffarabad, resulting in dozens of casualties. Pakistan’s military reported it had downed five Indian fighter jets, including Rafale, MiG-21, and SU-30 aircraft, some of which had targeted critical infrastructure like the Neelum-Jhelum Hydropower Project.
Internationally, global markets also showed gains. Asian stocks rose after U.S. President Donald Trump signaled that a trade agreement with the UK was nearing, boosting investor sentiment ahead of high-stakes talks between the U.S. and China set for Saturday.
U.S. S&P 500 futures rose 0.5%, while Nasdaq futures gained 0.7%. In Europe, the STOXX 600 climbed 0.7% and London’s FTSE futures advanced 0.5%. Investors also awaited monetary policy announcements from the Bank of England, Sweden, and Norway. A minor rate cut was expected from the Bank of England, while no major shifts were anticipated from the Nordic central banks.
