After a steep sell-off in the previous session, buying interest returned to the Pakistan Stock Exchange on Friday, driving a strong rebound in the benchmark KSE-100 Index. Investor sentiment improved across the board, helping the market recover a significant portion of the losses recorded a day earlier, as confidence gradually returned to heavyweight sectors.
According to data released by the Pakistan Stock Exchange, the market opened on a positive footing and maintained upward momentum through much of the trading session. The KSE-100 Index climbed to an intraday high of 186,619.51 points as buyers stepped in after Thursday’s sharp correction. By the close of trading, the index settled at 184,174.48 points, marking a gain of 1,836.36 points, or 1.01%, compared to the previous close of 182,338.12 points.
The recovery was broad-based, with strong participation from key sectors that carry significant weight in the index. Commercial banks, cement manufacturers, fertiliser producers, oil and gas exploration companies, oil marketing firms, power generation companies and refineries all recorded notable gains during the session. The renewed interest in these sectors reflected selective buying by investors who viewed the earlier decline as an opportunity to enter fundamentally strong stocks at lower valuations.
Index-heavy stocks traded firmly in positive territory throughout the day. Shares of ARL, HUBCO, MARI, OGDC, POL, PPL, PSO, SSGC, SNGPL, MCB, MEBL, NBP and UBL contributed substantially to the upward movement of the benchmark index. The strength in banking and energy stocks, in particular, played a central role in lifting overall market sentiment.
The rebound came a day after the market witnessed one of its sharpest single-day declines in recent months. On Thursday, the KSE-100 Index had plunged by 6,042.27 points, or 3.21%, closing at 182,338.12 points. That decline was driven by broad-based selling pressure across heavyweight stocks, triggered by a combination of weak corporate earnings announcements, unwinding of speculative positions and aggressive profit-taking by investors.
Market participants noted that the scale of Thursday’s correction had pushed several fundamentally sound stocks into attractive territory, prompting bargain hunting in Friday’s session. The return of buying interest suggested that investors remained cautiously optimistic about the medium-term outlook, despite ongoing volatility and earnings-related concerns.
International market developments also continued to influence sentiment. Asian equity markets were mixed in early trading on Friday, reflecting uncertainty in global financial markets. The mood was shaped by comments from US President Donald Trump, who endorsed a bipartisan agreement aimed at averting a government shutdown and discussed plans regarding future leadership at the US Federal Reserve.
MSCI’s Asia-Pacific index excluding Japan moved within a narrow range before slipping 0.2%, although it remained on track for its strongest monthly performance in more than three years. Meanwhile, US equity futures pointed lower, with S&P 500 e-mini futures declining 0.4% and Nasdaq e-mini futures falling 0.5%, indicating cautious positioning ahead of further economic and corporate updates.
On Wall Street, stocks ended lower in the previous session after subdued earnings from Microsoft raised questions about the pace and returns of investments linked to artificial intelligence. The S&P 500 edged down 0.1%, while the Nasdaq Composite dropped 0.7%. Although earnings season in the United States has produced mixed results, around three-quarters of companies reporting so far have exceeded market expectations.
Despite global volatility, the recovery at the Pakistan Stock Exchange highlighted the market’s resilience and the willingness of investors to re-enter positions after sharp corrections. Analysts noted that while short-term fluctuations are likely to persist, sector-led buying and selective accumulation could continue to provide support to the index in the near term, particularly if corporate earnings and macroeconomic indicators show signs of stability.
Follow the PakBanker Whatsapp Channel for updates across Pakistan’s banking ecosystem.