The Pakistan Stock Exchange (PSX) experienced a notable rebound today as initial selling pressure eased, reflecting a positive reaction from investors to recent economic developments. This market optimism was primarily fueled by the federal cabinet’s approval of a historic circular debt resolution plan and the finalization of new foreign financing arrangements.

Despite these positive catalysts, the benchmark KSE-100 Index ultimately pared its early gains, closing at 120,002.59, down 463.34 points, or 0.38%. The index had climbed to an intraday high of 121,745.30 points, showing a significant surge of 1.06%, but later touched a low of 119,770.03 points.

The initial bullish activity at the PSX was also supported by surging global crude oil prices and expectations surrounding the rationalization of industrial power tariffs. However, intensifying regional tensions ultimately overshadowed these positive developments, leading to renewed selling pressure in the latter part of the session.

The federal cabinet’s approved plan aims to address a substantial Rs1,275 billion in circular debt. Concurrently, the Ministry of Finance has successfully finalized a $1 billion syndicated term finance facility, contributing to the market’s initial positive sentiment.