PSX Rises Strongly as Ceasefire Optimism Boosts Investor Confidence

The Pakistan Stock Exchange (PSX) recorded a strong recovery on Friday as investors reacted positively to reports of progress in peace talks between Pakistan and Afghanistan. Market sentiment improved after news surfaced that both sides agreed to uphold a ceasefire. Growing expectations ahead of corporate earnings season also played a key role in lifting stocks.

The KSE-100 Index surged and touched the day’s high at 160,535.6 points, showing a gain of 3,802.73 points (2.43%). During the day, the index also hit a low of 158,195.54 points, still up by 1,462.67 points (0.93%), reflecting strong buying interest throughout the session.

Market analysts linked the bullish trend to improving geopolitical signals and investor hopes for positive earnings reports. Ahsan Mehanti, CEO of Arif Habib Commodities, said the ceasefire development helped revive confidence. He added that expectations around quarterly earnings also motivated investors to take fresh positions.

Ceasefire Talks Drive Market Mood

Turkey confirmed late Thursday that Pakistan and Afghanistan’s interim government agreed to maintain a ceasefire following discussions in Istanbul. The negotiations reportedly took place between October 25 and 30, building on earlier talks held in Doha on October 18–19. The development eased regional tensions and encouraged risk-taking at PSX.

Economic Indicators Support Market Movement

Meanwhile, new data from the State Bank of Pakistan (SBP) showed that foreign exchange reserves increased by $16 million, reaching $14.471 billion for the week ending October 24. However, overall liquid reserves declined slightly to $19.687 billion due to lower commercial bank reserves.

The SBP expects reserves to rise to $17.8 billion by the end of the fiscal year, giving investors confidence in Pakistan’s external position.

Market Recovers After Earlier Pressure

The strong rally followed a weak trading session on Thursday, when the market lost 1,732.19 points (1.09%) and closed at 156,732.87. On that day, the index briefly touched a high of 159,507.41 points, before heavy selling pushed it down to 156,327.60 points.

Friday’s rebound showed renewed optimism, supported by geopolitical stability hopes and improving financial data.

Outlook

Market experts believe the PSX may continue to show strength if earnings announcements remain positive and if geopolitical stability continues. Investors will keep watching foreign reserves and regional developments closely in the coming days.