PSX rebounds after volatile session, KSE-100 gains nearly 1,500 points

The Pakistan Stock Exchange (PSX) witnessed a turbulent session on Friday, as investors tracked the shifting geopolitical situation, with the benchmark KSE-100 staging a late recovery to close the week’s final session higher by nearly 1,500 points.

According to the PSX website, the market opened sharply lower, with the KSE-100 dropping to 166,380.71—down more than 2,700 points by 10:00 am. By noon, the index was hovering at 167,007.65, still down 2,165.72 points, or 1.28%.

However, buying returned to the bourse during the second half on the reports that Iran has agreed to participate in the Islamabad talks. 

Reuters reported, citing Pakistani government sources, that Iran's Foreign Minister Abbas Araqchi was expected in Islamabad on Friday evening ​to discuss proposals for restarting peace talks with the ​United States, but was not due to meet ⁠U.S. negotiators.

The index closed at 170,672.04, up by 1498.67 points, or 0.89% from the previous close.

Friday's recovery followed a 2,406-point, or 1.40% downturn on Thursday, when the index closed at 169,173.38 amid continued uncertainty over geopolitical developments.

Global markets reflected a mixed trend. Asian equities struggled as investors reacted to developments in the Middle East, while oil prices resumed their upward movement.

MSCI’s Asia-Pacific index outside Japan rose 0.3% and was on track for a weekly gain of 0.8%. Japan’s Nikkei index advanced 0.45%, while markets in South Korea, China, and Hong Kong declined.

In the United States, futures for the Nasdaq and S&P 500 rose 0.6% and 0.1%, respectively, after losses in the previous session. European futures were lower, with EUROSTOXX 50 down 0.65% and FTSE futures declining 0.9%.