KARACHI: An agreement to extend the truce between Islamabad and Kabul in a last-ditch diplomatic effort helped restore investor confidence on Friday, triggering aggressive value-hunting across the board and propelling the benchmark index above the 161,000-point barrier. The Pakistan Stock Exchange (PSX) witnessed a dramatic recovery of nearly 5,000 points after seven sessions of heavy losses.

According to Ali Najib, Deputy Head of Trading at Arif Habib Ltd, “After days of relentless pressure, the bulls finally staged a powerful comeback in the last session of the week and month, propelling the KSE-100 index to reclaim the 160,000 mark.” The index surged by 4,899 points, or 3.13pc, to close at 161,632 — marking the fourth-highest single-day gain in the PSX’s history.

The rally was driven by optimism following the ceasefire agreement between Pakistan and Afghanistan, brokered in Istanbul by Turkiye and Qatar. The development eased geopolitical tensions that had weighed heavily on market sentiment throughout the week, reviving confidence among both institutional and retail investors.

Broad-based buying dominated the session, with strong performances in the banking, fertiliser, technology and cement sectors. Market participation remained robust, with total volume rising 12.32pc to 951.3 million shares, while traded value increased 12.38pc to Rs42.2bn. WorldCall Telecom once again topped the volume chart, with 98.9 million shares changing hands.

Ceasefire between Pakistan and Afghanistan lifts sentiment, tossing index above 161,000-point barrier

After consecutive losses over the past seven sessions, the market entered a consolidation zone between 160,000 and 170,000 points, signalling renewed stability. Analysts said 160,000 now serves as a strong support level, while the benchmark index could potentially test 165,000 in the coming sessions. The strong rebound helped limit overall weekly losses and restore market confidence.

According to Topline Securities Ltd, the recovery followed confirmation from Turkiye’s foreign ministry that Pakistan and the Afghan Taliban regime had agreed to maintain a ceasefire after a fresh round of talks in Istanbul. Major positive contributors to the index included United Bank, Meezan Bank, Fauji Fertiliser, Habib Bank, Bank Al-Habib, Systems Ltd, Lucky Cement, and Bank Alfalah, which collectively added 2,390 points to the KSE-100’s tally.

Published in Dawn, November 1st, 2025