Karachi, May 9, 2025 — The Pakistan Stock Exchange (PSX) staged a powerful comeback on Friday, surging by 3,648 points amid renewed optimism over easing geopolitical tensions between Pakistan and India, and positive expectations surrounding the IMF program.
The benchmark KSE-100 index jumped to 107,175 points, recovering from Thursday’s sharp fall when the PSX had suffered its worst-ever single-day decline of 6,482 points. That plunge was triggered by escalating cross-border tensions. However, today’s rally reflects a sharp reversal in sentiment, buoyed by hopes of diplomatic breakthroughs and economic support.
Analysts at Chase Securities noted that after enduring a four-day losing streak, which wiped out 11.2% of market value, the PSX rebounded strongly. The 3.52% single-day gain was driven by expectations of de-escalation, as global diplomatic efforts appeared to reduce hostility in the region.
Trading activity remained robust, with the market seeing a total volume of 675 million shares and a value of PKR 38.5 billion. The recovery was also fueled by positive developments on the economic front, including hopes for the release of a $1 billion IMF tranche and anticipated payments in the energy sector’s circular debt, both of which significantly uplifted investor confidence.
Key sectors led the rally, with Oil and Gas Exploration contributing 736 points, Banking adding 719 points, Cement boosting 565 points, and Fertilizer gaining 335 points. Heavyweight stocks such as OGDC, PPL, SNGP, and PSO recorded gains between 4% and 6%, driving the broader market upward.
Topline Securities highlighted that the PSX’s recovery was also underpinned by optimism over the upcoming IMF Executive Board meeting to consider Pakistan’s Extended Fund Facility (EFF) request. Investors are anticipating a favorable outcome, further energizing buying activity across key stocks.
Major contributors to the index included LUCK, MARI, HUBC, HBL, FFC, PPL, OGDC, ENGROH, EFERT, and PSO, collectively adding 1,923 points. On the trading value front, PSO (PKR 1.97bn), MARI (PKR 1.82bn), and OGDC (PKR 1.67bn) led the charts.
Despite the surge, the traded volume and value were slightly down day-on-day, with 513 million shares traded and PKR 29 billion in value, representing a 21% and 18% drop respectively. Still, today’s rebound firmly reestablished the PSX’s resilience amid geopolitical and economic uncertainty.