Pakistan Stock Exchange rebounds over 6,700 points amid diplomatic efforts and currency stabilization

The Pakistan Stock Exchange’s KSE-100 index rebounded sharply on Wednesday, rising over 6,700 points to close at 155,512, reflecting renewed investor confidence following signs of diplomatic de-escalation in the Middle East. This surge, representing a 4.55% gain, was supported by multiple sectors and declines in international oil prices, according to Dawn.

Earlier intraday trading saw even larger gains, with the index climbing over 7,400 points to reach 156,204.89 before settling lower, amid ongoing diplomatic efforts including Deputy Prime Minister Ishaq Dar’s visit to China. The State Bank of Pakistan played a key role by intervening in the foreign exchange market through net foreign exchange purchases, helping stabilize the Pakistani rupee and bolstering foreign reserves.

The rebound follows a significant downturn experienced earlier in the week, when the index fell below 145,000 points amid geopolitical tensions and sell-offs driven by war concerns. The previous day’s recovery of nearly 1,900 points offered tentative optimism, helped by a recent staff-level agreement between Pakistan and the International Monetary Fund for the release of financial tranches.

Investors remain watchful as geopolitical factors continue to influence market volatility, but the combination of diplomatic progress and central bank intervention has introduced a stabilizing force. Market experts from AKD Securities Ltd and Arif Habib Ltd view these developments as enhancing prospects for sustained recovery.

Looking ahead, the market’s trajectory will depend on the outcome of ongoing diplomatic talks and further currency stabilization measures by the State Bank of Pakistan. Close attention will also be paid to IMF engagement and global economic trends that could affect investor sentiment and foreign capital flows.