Investor Sentiment Lifts PSX After Sharp Sell-Off

The Pakistan Stock Exchange (PSX) found stability after Thursday’s steep decline, with the benchmark KSE-100 Index rebounding strongly. The index touched an intraday high of 184,453.20 points, gaining 2,115.08 points or 1.16%, as investors regained confidence amid easing geopolitical concerns.

Market analysts noted that institutional support in oversold stocks played a key role in the recovery. Investors were encouraged by signs of possible de-escalation between the U.S. and Iran, which reduced risk premiums across global markets.

Crude oil prices also added momentum to the rally. Brent crude surged by $2.61 to $71.01 per barrel, marking its biggest monthly gain in four years, while WTI rose by $2.54 to $65.75. The rise in energy prices fueled optimism in energy-linked stocks and supported overall market sentiment.

The State Bank of Pakistan (SBP) reported an increase in foreign exchange reserves, with total liquid reserves climbing to $21.293 billion. This improvement in reserves further strengthened investor confidence in Pakistan’s financial stability.

Market experts highlighted that the final day of rollover week allowed investors to shift focus toward the upcoming earnings season. Speculation around corporate results added to the bullish activity, helping the market recover from the previous day’s rout.

On Thursday, the KSE-100 Index had slumped by more than 6,000 points, reflecting investor anxiety over geopolitical tensions. However, Friday’s rebound demonstrated resilience and the ability of the market to stabilize quickly when external pressures ease.

The recovery underscores the importance of global developments in shaping Pakistan’s financial markets. With geopolitical risks cooling and economic indicators showing improvement, the PSX is expected to maintain momentum as investors look ahead to earnings announcements and broader economic trends.