The Pakistan Stock Exchange (PSX) witnessed a powerful rebound on Friday, with the benchmark KSE-100 Index soaring more than 2,800 points in early trading. The rally was driven by improved investor sentiment following signs of de-escalation in regional tensions and encouraging cues from international markets.
By 10:45 AM, the KSE-100 had climbed to 114,183.67 points — a gain of 2,857.10 points or 2.57%, marking one of the most significant single-day recoveries in recent weeks.
Broad-based buying was observed across key sectors including automobiles, cement, chemicals, commercial banking, oil and gas exploration, oil marketing, power generation, and refineries. Major blue-chip stocks such as OGDC, PPL, PSO, MARI, HUBCO, HBL, and NBP traded positively, contributing heavily to the market’s gains.
Geopolitical Relief
The rally follows a steep decline earlier in the week amid heightened tensions between Pakistan and India in the aftermath of a deadly attack in Indian-occupied Jammu and Kashmir (IIOJK). However, investor confidence was partially restored after U.S. Secretary of State Marco Rubio called for restraint and dialogue between the two nations, helping ease fears of further escalation.
Domestic Sentiment Boosted by Policy Expectations
Domestically, expectations of a possible interest rate cut in the upcoming Monetary Policy Committee (MPC) meeting further fueled optimism. Analysts also pointed to inflation projections — anticipated to remain under 0.5% — as a key factor strengthening the case for monetary easing.
Global Markets Lend Support
Positive trends in global markets also bolstered investor confidence. Asian equities posted gains, with Japan’s Nikkei up 1% and Taiwan’s index climbing 2%. Meanwhile, U.S. futures rebounded after statements from China’s commerce ministry signaled a willingness to re-engage in trade talks with Washington.
In commodities, oil prices continued to climb amid geopolitical uncertainty. Brent crude rose by 0.56% and WTI gained 0.6%, supported by renewed concerns over potential U.S. sanctions on Iran. On the other hand, gold prices slipped to $3,234.9 per ounce — the weakest weekly performance in two months — as demand for safe-haven assets waned.
Market Outlook
The KSE-100 Index not only recovered but also surpassed key psychological thresholds, briefly hitting 114,242 points — up 2,917 points — before slightly stabilizing. The reclaiming of the 112,000, 113,000, and 114,000 levels highlighted renewed investor confidence after a turbulent period.
Despite Friday’s strong performance, analysts cautioned that the market’s trajectory will remain contingent on evolving geopolitical developments and upcoming economic indicators.
