The Pakistan stock market saw a powerful recovery as investors returned with confidence. Improved global signals and expectations of easier monetary policy lifted sentiment across the board.
The benchmark KSE-100 Index closed at 185,098.83 points, gaining 3,642.5 points or 2.01% compared to the previous close of 181,456.34.
An analyst at Topline Securities said buying by local institutions played a key role in driving the market higher during the session.
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Total traded volume reached 959.5 million shares, while the value of shares traded stood at Rs69.3 billion, showing strong participation.
"Top positive contribution to the index came from OGDC, PPL, HUBC, ENGROH, FFC, UBL & MEBL, as they cumulatively contributed +1,725 points to the index," the analyst said.
During the day, the index touched a high of 184,787.27 points, gaining 3,330.94 points, while the day’s low stood at 182,559.69 points.
"The market witnessed a sharp recovery after the latest news flows suggest the de-escalation between the US and Iran," said Huzaifa Riaz, Director at Mayari Securities.
"Additionally, sentiment around the next monetary policy remains dovish as the latest auction suggests a 50 bps cut, which could further improve a risk-on sentiment,” he added.
Ahsan Mehanti of Arif Habib Commodities also noted strong early buying. "Bullish activity witnessed in early session at PSX amid reports of US-Iran de-escalation," he said.
"Speculations over further SBP policy easing amid falling government bond yields played a catalyst role in bullish activity at PSX," he added.
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A Topline Research survey ahead of the SBP meeting showed 80% participants expect a rate cut, with most seeing a 50 bps reduction.
Meanwhile, SBP reserves rose by $16 million to $16.072 billion, while total liquid reserves reached $21.248 billion, supported by remittances and steady inflows.
The sharp rise shows investors were waiting for positive signals. Global calm and rate cut hopes boosted confidence quickly. Strong volumes suggest the rally had solid support.
