Stock Market Roars Back After Record One-Day Plunge

On May 9, after experiencing an unprecedented one-day plunge, the Pakistan Stock Exchange (PSX) witnessed a significant rebound on Friday. The KSE-100 index climbed by 3,647 points to finish at 107,174, reflecting restored faith among investors.

The trading session began with an impressive surge of 849 points, lifting the index to 104,375 shortly after opening. This positive momentum persisted throughout the day, eventually causing the index to reach a high of 105,642, which represented an overall increase of 2,115 points.

Nonetheless, market volatility persisted. The index momentarily dropped by 536 points, reaching as low as 102,990. It later bounced back with a recovery of 142 points, finishing at 103,669 before the close of trading.

The turnaround comes just a day after one of the sharpest declines in PSX history. On Thursday, the benchmark KSE-100 index plummeted by 6,482 points, closing at 103,526, as fears of war with India triggered panic selling. It was the second-biggest single-day drop in PSX history-the largest being a loss of 8,700 points last month after the U.S. imposed new tariffs.

Experts suggest that Friday’s recovery represents a temporary adjustment along with some purchasing of undervalued stocks following Thursday’s downturn. Nonetheless, they warn that continuing political unrest will keep influencing investors’ attitudes over the next few days.