The Pakistan Stock Exchange (PSX) opened on a positive note Friday, bouncing back from Thursday’s historic crash. Early trading showed signs of calm, helping investors regain some confidence.
The benchmark KSE-100 Index surged to an intraday high of 105,946.01 points, rising by 2,419.2 points or 2.33% from the previous close of 103,526.81.
However, the market showed signs of volatility. The index briefly touched an intraday low of 102,420.82, down 1,105.99 points or -1.06%, before rebounding.
Calm Start Boosts Confidence
Market participants reacted positively to a quiet start on Friday. Investors appeared relieved as no new security incidents were reported during early hours.
“After falling sharply by 6% yesterday due to drone attacks, Pakistani stocks have recovered and are up 2% in the first 30 minutes of trading on Friday,” said Topline Securities CEO Mohammad Sohail.
“So far, there has been no news of any major escalation, helping in restoring confidence,” he added.
IMF Board Meeting in Focus
Investor attention is now focused on the International Monetary Fund (IMF) Executive Board meeting scheduled for today. The Board is expected to decide on the approval of a $1.3 billion disbursement under Pakistan’s Extended Fund Facility (EFF).
The Government of Pakistan is also seeking to modify performance criteria and access funds under the Resilience and Sustainability Facility (RSF). The IMF and Pakistan reached a staff-level agreement in March during the first review of the $7 billion loan programme.
If approved, this fresh tranche would raise the total IMF disbursements to nearly $2 billion.
Thursday’s Record-Breaking Fall
Friday’s rebound followed Thursday’s worst-ever single-day decline at the PSX. The KSE-100 Index plunged by 6,482.21 points, a 5.89% drop, closing at 103,526.81.
The steep fall triggered the market’s circuit breaker, which halted trading for one hour. The KSE-30 Index had dropped more than 5% within just five minutes, prompting the shutdown.
During that dramatic session, the KSE-100 index had briefly reached a high of 111,881.03 points before crashing to as low as 101,598.91.
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Investors Remain Cautious
While Friday’s recovery lifted some of the gloom, analysts urge caution. Market momentum still depends on geopolitical stability and the outcome of the IMF meeting.
“There is optimism, but we’re not out of the woods yet,” said one trader on the condition of anonymity. “Everything hinges on how the IMF Board decides today.”
Looking Ahead
The PSX’s performance in the coming days will likely reflect investor reaction to the IMF verdict and any security developments. A smooth IMF approval could fuel further gains. On the other hand, delays or adverse news could bring fresh pressure.
For now, the market has managed to regain balance after a devastating fall, and all eyes are on Islamabad and Washington.
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