The Pakistan Stock Exchange (PSX) witnessed a remarkable comeback on the last trading day of the week, with the benchmark 100-Index surging by an impressive 3,648 points to close at 107,174 points.
This sharp upward momentum reflects a strong restoration of investor confidence, even amid regional geopolitical tensions.
At 9:40am, the KSE-100 Index stood at 105,759.27, showing an increase of 2,232.46 points or 2.16 per cent, as investor sentiment improved amid absence of further escalation in regional tensions and anticipation of positive developments from the International Monetary Fund (IMF).
The rebound was supported by buying across key sectors, including automobile assemblers, cement, commercial banks, oil and gas exploration companies, oil marketing companies, and power generation. Heavyweight stocks such as HUBCO, MARI, OGDC, PPL, POL, PSO, and SNGPL also traded in the green, contributing to the index’s recovery.
Market participants attributed Friday’s rally to a combination of technical correction after Thursday’s steep fall and reassurance stemming from no major developments on the geopolitical front.
A sense of calm returned to the market after Thursday’s sharp sell-off, which was triggered by reports of drone attacks and escalating tensions between Pakistan and India.
Meanwhile, attention turned to the scheduled meeting of the IMF’s Executive Board on Friday (May 9), which is set to review Pakistan’s progress under the $7 billion Extended Fund Facility (EFF) programme. The board is also expected to deliberate on Pakistan’s request for modification of performance criteria, along with a fresh $1.3 billion arrangement under the Resilience and Sustainability Facility (RSF).
If approved, Pakistan would receive approximately $1 billion (SDR 760 million) under the EFF, raising the total disbursements under the programme to nearly $2 billion. In addition, the $1.3 billion RSF loan, aimed at enhancing climate resilience, would be disbursed over a 28-month period.
On Thursday, the KSE-100 had plunged to 103,526.82 points, losing 6,500 points in a single day, in one of the steepest declines in recent market history. The fall was largely attributed to heightened political and security concerns.
In global markets, Japanese equities rose on Friday following a surge in the US dollar against the yen. The rally was supported by optimism over a US-UK trade agreement announced by President Donald Trump and British Prime Minister Keir Starmer, marking the first formal deal since Trump declared a 90-day suspension of tariffs to allow room for broader trade negotiations.
However, market optimism was tempered by scepticism regarding whether the limited UK deal would serve as a blueprint for ongoing US-China trade talks, set to resume in Switzerland on Saturday.
In Asia, Japan’s Nikkei and Topix indices climbed 1.2 per cent each, with the Topix extending its winning streak to an 11th session—the longest since October 2017. Taiwan’s equity benchmark advanced 1 per cent, while Australian stocks rose by 0.4 per cent. Hong Kong’s Hang Seng Index edged up 0.2 per cent, whereas mainland Chinese blue chips slipped slightly by 0.2 per cent.
