A day after experiencing one of its worst single-day losses, the Pakistan Stock Exchange (PSX) rebounded strongly on Wednesday. The benchmark KSE-100 Index of PSX surged by over 3,500 points during midday trading, registering an impressive 3.75% recovery and signaling renewed investor confidence.
At 12:05 PM, the KSE-100 Index was recorded at 98,109 points, reflecting a gain of 3,536 points. This sharp turnaround came on the heels of massive buying activity, with key sectors leading the rally, including banking, automobile assemblers, oil and gas exploration companies, oil marketing companies (OMCs), and power generation.
At PSX, heavyweight stocks such as Habib Bank Limited (HBL), National Bank of Pakistan (NBP), MCB Bank, Oil and Gas Development Company (OGDC), Sui Southern Gas Company (SSGC), and Hub Power Company (HUBCO) traded firmly in positive territory, boosting the index significantly.
The rebound marked a stark contrast to the prior day’s market rout when the KSE-100 Index of the PSX plummeted by over 3,500 points, settling at 94,574. This decline was triggered by heightened political tensions as protests in Islamabad escalated, prompting the deployment of the Pakistan Army to manage the unrest.
PSX sentiment shifted positively overnight as law enforcement agencies, including police and Rangers, launched a decisive crackdown on the Pakistan Tehreek-e-Insaf (PTI) protests. The protests, led by Bushra Bibi, wife of Imran Khan, and Khyber Pakhtunkhwa Chief Minister Ali Amin Gandapur, were effectively quelled, restoring calm in Islamabad.
“Pakistan stocks recovered at the opening after the opposition protest ended last night,” said Mohammed Sohail, CEO of Topline Securities, in a note to investors.
Adding to the optimism, the State Bank of Pakistan (SBP) introduced key measures to support the banking sector. The central bank removed the Minimum Profit Rate (MPR) requirement for conventional banks on deposits from financial institutions, public sector enterprises, and public limited companies. Islamic Banking Institutions (IBIs) were also instructed to distribute at least 75% of the weighted average gross yield from investment pools as profit on PKR savings deposits.
Globally, Asian markets remained cautious as investors weighed the potential impact of tariff policies announced by U.S. President Donald Trump, signaling volatility ahead. Despite this, PSX’s recovery highlights a strong local response to easing domestic tensions.
