The Pakistan Stock Exchange (PSX) saw a strong recovery on Friday, with the KSE-100 Index gaining over 2,200 points in early trading, following a historic plunge of nearly 6,500 points the previous day. At 9:40 am, the index reached 105,759.27, marking a 2.16% increase, as investor sentiment improved amid a reduction in regional tensions and hopes for positive updates from the International Monetary Fund (IMF).
The rebound was driven by buying activity across key sectors such as automobile manufacturing, cement, commercial banking, oil and gas exploration, oil marketing, and power generation.
Read more: KSE-100 Index Surges Over 1,700 Points Amid Major Rally at PSX
Major stocks like HUBCO, MARI, OGDC, PPL, POL, PSO, and SNGPL showed gains, contributing to the overall market recovery. The rally was seen as a combination of a technical correction after Thursday’s sharp drop and a return to calm due to a lack of further geopolitical escalation.
On the international front, focus shifted to the IMF’s Executive Board meeting scheduled for May 9, which would review Pakistan’s progress under its $7 billion Extended Fund Facility (EFF). The board is also set to discuss Pakistan’s request to adjust performance criteria and a new $1.3 billion loan under the Resilience and Sustainability Facility (RSF), aimed at boosting climate resilience.
If approved, Pakistan would receive about $1 billion from the EFF, raising the total disbursements to nearly $2 billion, along with the RSF loan spread over 28 months.
In contrast, Thursday’s market performance was marked by a steep 6,500-point drop in the KSE-100, primarily driven by escalating political and security concerns, including reports of drone attacks between Pakistan and India.
Meanwhile, global markets saw Japanese equities rise on Friday, buoyed by a surge in the US dollar against the yen and optimism surrounding a trade deal between the US and the UK. However, there were concerns over whether the UK deal would serve as a model for upcoming US-China trade talks. Asian markets, including Japan and Taiwan, also saw gains, while mainland China’s stock market showed more modest movements.
