The Pakistan Stock Exchange (PSX) staged a remarkable trend reversal on Friday as the KSE-100 Index surged 1,836 points (+1.01%) to close at 184,175, bouncing back after a sharp decline earlier in the week.
Market optimism was fueled by positive geopolitical developments, with statements from both the United States and Iran indicating a willingness to engage in dialogue and prevent escalation. Further support came from the Prime Minister’s recent policy announcements, which included a Rs4.04/kWh reduction in industrial power tariffs, a Rs9/kWh cut in wheeling charges, and a reduction in the Export Refinance Scheme rate from policy rate minus 3% to minus 6%, offering significant relief to industrial and export sectors.
Heavyweights like ENGROH, LUCK, UBL, MEBL, MARI, HBL, PPL, EFERT, JVDC, and HUBC led the rally, contributing 1,560 points collectively. The market remained active, with volumes of 802 million shares and a turnover of Rs50.7 billion, while KEL topped the volume chart with 81.4 million shares traded.
Despite this strong Friday rally, the PSX posted its seventh consecutive weekly loss, shedding 4,992 points (-2.64%) over the week. The index had hit an intra-week high of 191,033 and a low of 181,961 before settling at 184,175. Analysts suggest that if geopolitical tensions remain subdued, the KSE-100 may attempt to reclaim its recent high near 191,000 points in the near term.
“Market sentiment is improving as policy support and easing geopolitical concerns boost investor confidence,” noted a market analyst.