The Pakistan Stock Exchange (PSX) rebounded strongly on Friday, as the benchmark KSE-100 Index surged by 2,787.36 points — a remarkable 2.5% gain — signaling a dramatic turnaround after a steep sell-off earlier in the week.
The index soared to an intra-day high of 114,546.87 before closing at 114,113.93, significantly higher than the previous session’s close of 111,326.57. It had briefly dipped to a session low of 112,820.07 during early trading hours.
Market activity remained vibrant throughout the day, with trading volumes hitting 192.3 million shares and a total traded value of Rs17.12 billion. The bullish momentum was fueled by renewed investor confidence, supported by improving macroeconomic indicators and expectations of policy continuity.
Analysts credited the rebound to a shift in sentiment after a turbulent week dominated by geopolitical uncertainty. Just a day earlier, the PSX had witnessed a sharp downturn, with the KSE-100 Index tumbling over 3%, losing more than 3,500 points amid rising tensions with India.
The panic was sparked by a statement from Information Minister Attaullah Tarar, who warned of a potential Indian military strike within 24 to 36 hours. The geopolitical jitters led to a sharp sell-off across sectors, triggering rupee volatility, declining sovereign bonds, and widespread risk aversion in the market.
Bloomberg and other international media outlets highlighted Pakistan’s financial market underperformance amid the regional uncertainty.
Despite the recent volatility, Friday’s rally suggests a return of investor optimism and a potential stabilization of market conditions — contingent on geopolitical developments and economic policy clarity in the coming days.
