Stocks rebound at PSX after Thursday's plunge

Investor attention is now on the IMF meeting later today, where Pakistan hopes to secure a $1.3 billion disbursement.


News Desk May 09, 2025

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Pakistan’s benchmark KSE-100 index bounced back on Friday, rising 2,419.2 points (2.33%) in intraday trading to reach a high of 105,946.01, as market sentiment stabilised after Thursday’s steep sell-off.

The index had closed at 103,526.81 on Thursday after tumbling 6,482.21 points, or 5.89%, its worst single-day fall on record. Early trade on Friday saw no fresh disruptions, helping restore investor confidence.

Investor attention is now on the IMF Executive Board meeting later today, where Pakistan hopes to secure a $1.3 billion disbursement under its ongoing Extended Fund Facility.

The Board will also review Islamabad’s request for access to the Resilience and Sustainability Facility.

If approved, total disbursements under the programme will reach roughly $2 billion. The recovery follows a volatile session where the index swung between a low of 102,420.82 points and a high of 105,946.01 points.

On Thursday, stocks underwent a day of stampede as the PSX witnessed its largest single-day plunge of 6,482.21 points as fears of war between Pakistan and India intensified.

The market initially opened strong, reaching an intraday high of 111,881.02, but fears over escalating border tensions triggered another wave of panic selling. Trading was halted for an hour after the KSE-100 dropped nearly 7,000 points. Once trading resumed, the index continued its downward spiral, hitting an intra-day low of 101,598.90.

The massive sell-off followed the market's previous days of volatility, with investors increasingly fearful of a potential conflict. As geopolitical risks mounted, the market was gripped by panic, resulting in an unprecedented decline.

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