Pakistan Stock Exchange (PSX) staged a strong recovery on Friday, climbing sharply as renewed investor confidence returned following modest gains in the country’s foreign exchange reserves. The KSE-100 index rose by 3,159.72 points to reach 184,616.05.
Investors reacted positively after Pakistan’s forex reserves increased by $16 million over the past week, providing a signal of economic stability. The State Bank of Pakistan reported that official reserves inched up from $16.0557 billion to $16.0718 billion.
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Overall, the country’s total reserves rose to $21.2484 billion, including commercial banks’ holdings, which grew by $5.6 million to reach $5.1927 billion. Analysts noted this incremental increase offered some relief amid global financial uncertainties.
The gains helped the stock market recover from a recent period of bearish momentum, during which the PSX lost over 1,100 points due to massive selling pressure. Friday’s rally reflected a shift in investor sentiment and market optimism.
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Market officials highlighted that the uptick provides breathing space for economic activity and reinforced confidence in equities. They cautioned, however, that external inflows and outflows continue to require careful monitoring to maintain stability.
Trading activity remained strong throughout the day, with major sectors contributing to the bullish momentum. Analysts said sustained positive sentiment could encourage further investment, provided the macroeconomic environment remains supportive.