Pakistan’s benchmark KSE-100 Index rebounded sharply on Thursday, shrugging off an early sell-off to close more than 800 points higher as renewed buying interest lifted market sentiment.
The index opened under pressure, with investors initially opting for profit-taking amid lingering concerns over economic indicators and global market cues. However, sentiment shifted as the session progressed, with buyers stepping in at lower levels, triggering a broad-based recovery across key sectors.
Analysts said the turnaround was driven largely by buying in index-heavy stocks, particularly in the banking, energy, and fertiliser sectors. Improved confidence regarding near-term policy stability and expectations of supportive economic measures also contributed to the late-session rally.
Market participants noted that the rebound reflected underlying resilience in equities, with investors viewing dips as an opportunity to accumulate fundamentally strong stocks. Trading volumes picked up during the recovery phase, indicating increased participation and renewed optimism.
Despite the strong close, analysts cautioned that volatility is likely to persist in the short term, as investors remain sensitive to economic developments, interest rate expectations, and external financing news. Sustained upward momentum, they said, will depend on consistent policy signals and improved macroeconomic clarity.
The KSE-100’s ability to recover from early losses and finish decisively higher was seen as a positive technical signal, suggesting that market confidence, while cautious, remains intact.
This story has been reported by PakTribune. All rights reserved.