Pakistan Stock Exchange stages strong rebound as KSE-100 jumps over 3,600 points

The Pakistan Stock Exchange witnessed a powerful recovery on Friday as bullish momentum returned to the market, driven by improved global and domestic sentiment. The benchmark KSE-100 Index surged by 3,642.5 points, or 2.01 percent, to close at 185,098.83 points, compared with the previous session’s close of 181,456.34.

Market participants attributed the sharp rebound mainly to aggressive buying by local institutional investors, alongside easing geopolitical tensions between the United States and Iran. Expectations of further monetary easing by the State Bank of Pakistan also supported risk-taking appetite.

During the session, the index touched an intraday high of 184,787.27 points, reflecting a gain of 3,330.94 points, while the day’s low stood at 182,559.69 points, still firmly in positive territory.

Trading activity remained robust, with total volume reaching 959.5 million shares. The overall value of shares traded during the session amounted to Rs69.3 billion, highlighting strong participation across sectors.

According to market analysts, major index-heavy stocks led the rally. Companies including Oil and Gas Development Company, Pakistan Petroleum Limited, Hub Power Company, Engro Holdings, Fauji Fertilizer Company, United Bank Limited and MCB Bank collectively added more than 1,700 points to the index.

Analysts noted that investor confidence improved after reports suggested a cooling of tensions between the US and Iran, reducing global uncertainty. At the same time, expectations surrounding the upcoming monetary policy decision added further optimism.

Market sentiment has turned increasingly dovish ahead of the State Bank of Pakistan’s Monetary Policy Committee meeting scheduled for January 26. A recent survey conducted by Topline Research indicated that 80 percent of participants expect an interest rate cut. Among them, a majority anticipate a 50 basis points reduction, while others foresee a deeper cut or no change at all. In its previous meeting held in December 2025, the central bank had already lowered the policy rate by 50 basis points.

On the macroeconomic front, the State Bank of Pakistan reported a modest increase in foreign exchange reserves. SBP reserves rose by 16 million dollars to 16.072 billion dollars in the week ending January 9, while total liquid reserves climbed to 21.248 billion dollars. The central bank highlighted continued foreign exchange purchases, supported by a relatively stable current account and strong remittance inflows.

Looking ahead, the SBP projects the current account deficit for fiscal year 2026 to remain within 0 to 1 percent of GDP and expects foreign reserves to reach 17.8 billion dollars by June 2026, backed by planned official inflows.

The strong rebound comes after a weak session on Thursday, when the KSE-100 Index had declined by over 1,100 points amid profit-taking and cautious sentiment.

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FAQs

Why did the Pakistan Stock Exchange rise sharply today?

The market rebounded due to buying by local institutions, easing US-Iran tensions and expectations of an interest rate cut by the State Bank of Pakistan.

How many points did the KSE-100 Index gain?

The KSE-100 Index gained 3,642.5 points, closing at 185,098.83 points.

Which stocks contributed most to the rally?

Major contributions came from OGDC, PPL, Hub Power, Engro Holdings, Fauji Fertilizer, UBL and MCB Bank.

What is the outlook for interest rates in Pakistan?

Most market participants expect the State Bank of Pakistan to cut interest rates in the upcoming policy meeting, with a 50 basis points cut seen as the most likely outcome.

How was trading activity during the session?

Trading volumes were strong, with nearly 960 million shares traded and a total value of Rs69.3 billion.

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