PSX rebounds 1,500 points on reports of Iranian FM expected visit | The Express Tribune

The Pakistan Stock Exchange (PSX) witnessed a day of extreme volatility on Friday, with the benchmark KSE-100 Index staging a dramatic recovery to close in the green after an initial plunge of nearly 3,000 points.

The KSE-100 Index closed at 170,672 points, gaining 1,498 points (+0.89% DoD), capping off a highly volatile session. The index initially plunged nearly 3,000 points amid weak sentiment but staged a sharp recovery in the latter half, briefly flipping into a strong rally before settling with solid gains, reflecting heightened intraday swings and fragile conviction, according to KTrade.

Volumes remained firm at 445 million shares, with activity concentrated in BOP (112mn), YOUW (72mn), and KEL (44mn), indicating continued retail-driven participation during the recovery phase.

Read More: Iranian FM expected to arrive in Islamabad tonight: state media

Sentiment turned notably in the second half on reports that Iranian Foreign Minister Abbas Araghchi is expected to visit Islamabad with a delegation later on Friday, fueling speculation of potential diplomatic engagement. This triggered aggressive buying, helping the market recoup earlier losses and shift momentum decisively.

Looking ahead, caution remains warranted. The upcoming MPC meeting on Monday is a key trigger, with expectations of a rate hike amid persistent double-digit inflation. Additionally, elevated global oil prices and ongoing geopolitical tensions continue to pose risks.

However, any concrete progress or signals of negotiations between Iran and the US could act as a strong positive catalyst, potentially stabilising sentiment and supporting further upside in the near term.