The Pakistan Stock Exchange (PSX) experienced a significant rally on Friday, with the benchmark KSE-100 index surging over 2.4%. The bullish sentiment was primarily driven by reports of a ceasefire agreement between Pakistan and Afghanistan, coupled with optimistic speculation for the ongoing earnings season.
The index reached an intraday high of 160,535.60, reflecting a gain of 3,802.73 points. This strong performance follows a decline in the previous session, marking a notable recovery for the market.
The market’s upswing was largely attributed to confirmed reports of a diplomatic breakthrough. Turkey’s foreign ministry announced that Pakistan and the Afghan Taliban regime have agreed to uphold a ceasefire following a fresh round of talks in Istanbul.
Read: Pakistan Stock Exchange Plunges Over 1,700 Points in Seventh Straight Loss
This agreement, which builds upon a previous truce established in Doha, has significantly improved risk appetite among investors. The reduction in geopolitical tensions along the border is viewed as a positive development for regional stability and economic prospects.
Supporting the positive momentum, the State Bank of Pakistan reported that its foreign exchange reserves increased by $16 million to $14.471 billion for the week ending October 24. While total national reserves experienced a slight decrease, the central bank’s holdings remained stable.
Thursday’s session had seen the market extend its losses, with the KSE-100 shedding 1,732 points. Today’s robust recovery of over 3,800 points not only erased those losses but also pushed the market significantly higher, highlighting a dramatic shift in trader sentiment driven by the ceasefire news and prospects for the earnings season.
