Market Rebound: Pakistan Stock Exchange Surges Amidst Eased Tensions

The Pakistan Stock Exchange experienced a surprising rebound, surging by 2,787 points after a turbulent week. This recovery is attributed to de-escalation signals in regional tensions with India, positive inflation data, and the anticipation of interest rate cuts. The upcoming IMF board meeting also plays a pivotal role in investor sentiment.

The Pakistan Stock Exchange experienced an unexpected recovery on Friday after a week marked by plunging shares due to heightened tensions and confrontational cues with India.

This week saw the PSX lose 3,500 points on Wednesday, but it rebounded with the benchmark KSE-100 index climbing 2,787 points, closing at 1,14,113.93—an impressive 2.5 percent rise.

Financial analysts credit this comeback to potential de-escalation signals in the regional standoff and optimism from encouraging inflation data and a prospective monetary policy shift come Monday. Investor focus remains on the May 9 IMF board meeting, regional tensions, interest rate prospects, and possible military strategies of India.

(With inputs from agencies.)