The Pakistan Stock Exchange (PSX) bounced back strongly on Friday, reversing some of the losses sustained in the previous day’s sharp sell-off.

The benchmark KSE-100 Index climbed 2,627.98 points, or 2.36%, to reach an intraday high of 114,250.59, up from Thursday’s close of 111,326.57.

At 12:40pm, the index was trading at 113,954.55 points.

Market sentiment improved notably as investors returned to buying, driven by bargain-hunting and renewed confidence after the prior session’s volatility.

On last working day, the PSX experienced a steep sell-off as geopolitical tensions with India escalated sharply. The benchmark KSE-100 Index plummeted by over 3%, shedding more than 3,500 points amid fears of military conflict.

Investor sentiment was rattled following a warning by Information Minister Attaullah Tarar, who claimed India might launch military action within 24 to 36 hours.

Global outlets like Bloomberg highlighted the impact on Pakistan’s financial markets, noting underperformance in stocks, rupee volatility, and declining dollar bonds.