Karachi, May 2, 2025 – The Pakistan Stock Exchange (PSX) showed a strong recovery on Friday morning as investor confidence returned to the market following the previous session’s steep losses.
In early trading hours, the benchmark KSE-100 index surged by over 2,000 points, signaling renewed optimism among market participants.
The KSE-100 index is currently being traded at 113,377 points, posting a gain of 2,051 points at 9:25 AM compared to the last closing of 111,326 points. This significant rebound at the PSX comes after a sharp sell-off earlier in the week, which was triggered by rising geopolitical tensions in the region.
The PSX had remained closed on May 1, 2025, due to Labor Day—a public holiday declared by the government—allowing a brief pause in market activity. When the market reopened on Friday, it appeared that investors had partially regained confidence, with bargain hunting and value buying driving the index upward.
On April 30, 2025, the PSX witnessed a massive drop of 3,545 points, sparked by heightened tensions between Pakistan and India. Investor panic was fueled by a press briefing from the Minister for Information, who revealed that Pakistan possessed “credible intelligence” indicating a potential Indian military strike within 24 to 36 hours. This announcement led to a wave of risk-off sentiment and widespread selling across the board.
According to Chase Securities, the previous decline was broad-based and heavily impacted key sectors. The banking sector alone contributed a loss of 713 points, while the cement sector dropped by 556 points, and exploration and production (E&P) stocks shed 514 points. Major listed entities including LUCK, ENGROH, UBL, PPL, and FFC collectively dragged the market down by 1,132 points.
While today’s recovery at the PSX is encouraging, analysts advise caution, warning that further volatility is possible depending on the evolving political landscape and diplomatic developments.