The Pakistan Stock Exchange (PSX) benchmark KSE-100 Index extended its recovery, closing at 165,348.04 after gaining 1,541.83 points, or 0.94%, from 163,806.21.
The index hit an intraday high of 165,348.04 and a low of 164,281.95 (+0.29%). This rebound followed Friday’s 0.39% drop, marking a weekly gain of 708 points (+0.4%).
Investor confidence rose after Pakistan and Afghanistan’s ceasefire agreement, confirmed by Defence Minister Khawaja Muhammad Asif, with follow-up talks set for October 25 in Istanbul. The IMF’s staff-level agreement for the second Extended Fund Facility review and first Resilience and Sustainability Facility projected FY26 GDP growth at 3.6% and inflation at 6%.
Read: IMF Cannot Impose Conditions Against Pakistan’s National Interest
Global equities rallied, while earnings season speculation fueled buying. Falling fixed-income yields, better credit ratings, and limited alternatives boosted inflows. Pakistan signed a RMB 5 billion MoU with China for water crisis solutions, and the government raised Rs507 billion via Pakistan Investment Bonds and Rs776 billion through T-bills, with yields up 13–21 basis points.
Read: Pakistan, Afghanistan Agree on Immediate Ceasefire After Doha Talks
Externally, SBP reserves grew $21 million to $14.4 billion, and the rupee appreciated 0.03% to Rs281.1 per US dollar.
The KSE-100’s uptick signals renewed optimism amid diplomatic wins and economic reforms. Continued positive news could sustain gains.
