Pakistan’s stock market experienced a significant rebound after a turbulent period of panic selling. On Thursday, the Karachi Stock Exchange (KSE) showcased resilience, with the benchmark KSE-100 index rising by 1.7%, which translates to an impressive recovery of 1,850 points.
A Dramatic Market Turnaround
On Wednesday, investors faced a dramatic plunge as the KSE-100 plummeted by nearly 6%, marking its steepest decline since 2021. This downturn was primarily fueled by rising tensions with India and the initiation of Operation Sindoor, a military operation in response to a tragic attack in Pahalgam that resulted in the loss of 26 lives.
However, Thursday brought a wave of optimism. The index opened positively at 111,530, and as the day progressed, it maintained an upward trajectory, showing an increase of 0.26% at the time of reporting.
Stocks Spark Interest Amid Recovery
Several sectors demonstrated renewed buying enthusiasm, particularly in:
- Automobiles
- Cement
- Banking
- Fertilizer
- Oil & Gas
- Power
Just a few months ago, Pakistan’s equity market was thriving. The KSE-100 had surged by over 86% in 2024, marking one of its most robust performances in decades. However, the recent turmoil has reversed much of that momentum, leading to a 4.1% decline over the last nine sessions due to escalating concerns regarding potential cross-border conflict.
April also proved challenging, with the KSE-100 experiencing a decline exceeding 6%, making it the worst monthly performance since August 2023.
Year-to-Date Performance
Despite the positive turn on Thursday, the KSE-100 remains down nearly 1% for the year, highlighting the ongoing volatility within the market. Investors are hopeful that the recent recovery marks the beginning of a more stable period, but uncertainty continues to loom.
As developments unfold, stakeholders will be closely monitoring the situation for further insights into market trends and potential recovery strategies.
