KARACHI: The Pakistan Stock Exchange (PSX) witnessed a strong recovery on Wednesday, with the benchmark KSE-100 index climbing 1,624 points to reach 157,801 during intra-day trading, as investors returned to the market following one of the steepest single-day declines in recent history.
The index, which had closed at 156,177 points a day earlier, oscillated between a low of 156,638 and a high of 158,484 during the session, reflecting heightened volatility but renewed buying interest.
Market experts said the rebound followed “peak fear” levels seen in the previous session, when panic selling triggered a drop of more than 11,000 points, nothing that such extreme declines often pave the way for sharp relief rallies, as bargain hunters step in to capitalize on oversold stocks.
The turnaround was aided by signals of de-escalation in the US-Iran/Middle East conflict, including remarks from US President Donald Trump that tensions may be easing. The prospect of reduced regional instability helped calm investors who had been rattled by fears of prolonged turmoil.
Global oil prices also retreated as geopolitical concerns subsided, a development seen as positive for Pakistan’s economy. As a net oil importer, lower energy costs are expected to ease the import bill, reduce pressure on the rupee, and improve the outlook for sectors such as oil and gas, refineries, power, and transport.
Adding to the positive sentiment, the State Bank of Pakistan’s recent decision to keep the policy rate steady at around 10.5 per cent reassured investors by signaling stability in monetary policy amid global uncertainty.
