KARACHI: After suffering its second-largest single-day loss of more than 6,000 points overnight amid mounting economic worries and geopolitical tensions, the Pakistan Stock Exchange (PSX) staged a sharp rebound on Friday as bargain-hunters returned, helping the benchmark KSE-100 index settle above the 184,000-point mark.
The rally enabled the market to partially recoup around Rs209 billion in market capitalisation against a Rs568bn loss in the previous session.
Despite the bounce, Pakistan’s economy continues to grapple with formidable headwinds, including a widening current account deficit, falling foreign direct investment inflows, persistent core inflation, elevated business costs stemming from high energy tariffs and taxes, and slowing GDP growth.
According to Topline Securities Ltd, the KSE-100 index traded largely in the positive zone during the session as investors selectively picked up value stocks after the steep sell-off.
Heavyweight stocks led the recovery, with Engro Holdings, Lucky Cement, United Bank, Meezan Bank, Mari Energies and Habib Bank together contributing 1,197 points to the index.
Investor interest also emerged in the textile sector during the latter half of trading, following news that Prime Minister Shehbaz Sharif had announced a 300-basis-point cut in the Export Refinance Scheme rate to 4.5pc, aimed at supporting exporters.
Ali Najib, deputy head of trading at Arif Habib Ltd, said the PSX witnessed a strong trend reversal, with the index rising 1,836 points, or 1.01pc, to close at 184,174.49.
Market sentiment was further buoyed by easing geopolitical concerns, as official statements from both the United States and Iran signalled a willingness to engage in dialogue and avoid escalation.
Additional support came from the prime minister’s relief measures for industry, including a Rs4.04 per kilowatt-hour reduction in power tariffs for industrial consumers and a Rs9 per kWh cut in wheeling charges, offering much-needed respite to the industrial and export-oriented sectors.
However, market activity cooled compared to the previous session. Trading volume fell 13.71pc to 805 million shares, while traded value declined 23.45pc to Rs50.8bn. K-Electric topped the volume chart with 81.4 million shares.
Analysts said the index’s recovery above 184,000 points has stabilised sentiment. Further upside towards the recent high of 191,000 remains possible, provided no fresh adverse geopolitical developments surface.
Published in Dawn, January 31st, 2026