The Pakistan Stock Exchange staged a strong rebound on Friday as investors returned to buying, encouraged by expectations of an interest rate cut and easing geopolitical tensions between the US and Iran. Improved sentiment helped lift risk appetite early in the trading session.
The benchmark KSE 100 Index surged to an intraday high of 184,787.27 points, gaining 3,330.94 points, or 1.84 percent, compared to the previous close. During the session, the index also touched a low of 182,559.69 points, still reflecting a healthy recovery from Thursday’s losses.
Market participants attributed the rally to positive global cues and growing confidence in monetary easing by the State Bank of Pakistan. Analysts noted that news pointing to reduced tensions between Washington and Tehran eased investor concerns, while expectations of a dovish monetary policy further fueled buying interest.
A recent survey conducted ahead of the SBP Monetary Policy Committee meeting on January 26 revealed that a large majority of market participants anticipate a rate cut, with many expecting a 50 basis points reduction. Falling government bond yields and stable foreign exchange conditions have added to optimism.
The central bank recently reported a rise in foreign exchange reserves, supported by remittances and continued market purchases. These developments have strengthened confidence in the country’s external position.
Overall, the rebound reflects renewed investor confidence, with hopes that lower interest rates and improved regional stability could support market momentum in the coming weeks.
