KARACHI – The Pakistan Stock Exchange (PSX) staged a strong recovery on Wednesday, reversing losses from the first two sessions of the current business week.
During intraday trading, the benchmark KSE-100 index rose 1,208.42 points, or 0.66 percent, closing at 183,316.97 points, after falling 186.83 points in the previous session to 182,153.55 points.
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Market activity remained robust, with 1,062.3 million shares traded at a value of Rs 37.88 billion, compared to 931.36 million shares worth Rs 58.88 billion on Tuesday. Market capitalization slightly declined to Rs 20.634 trillion from Rs 20.710 trillion. Of the 482 active companies in the ready market, 153 advanced, 280 declined, and 49 remained unchanged.
Analysts attributed the rebound to renewed investor confidence following mixed domestic and international cues, as well as anticipation of upcoming corporate earnings announcements.
In a major development for Pakistan’s capital markets, the PSX officially transitioned to the T+1 settlement cycle, a landmark reform aimed at enhancing efficiency and reducing settlement risk. Effective February 9, 2026, all eligible trades are now settled on a Trade plus one (T+1) basis, replacing the previous T+2 cycle. The move aligns Pakistan’s stock market with international best practices, strengthening investor confidence and improving liquidity in the market.
Market experts said the T+1 cycle is expected to reduce counterparty risk, facilitate faster fund and security transfers, and make the stock exchange more competitive on a global scale. “This reform modernizes Pakistan’s capital markets, bringing them in line with global standards and attracting both domestic and foreign investors,” said a senior analyst.
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The PSX rebound, coupled with structural reforms like T+1 settlement, signals a resilient capital market poised to support economic growth despite recent volatility.