PSX rallies, benchmark index gains 1,900 points in early trade

KARACHI: Shares at the Pakistan Stock Exchange extended gains on Friday, with the benchmark index rising more than 1 per cent in early trade, as improved sentiment following a Middle East ceasefire buoyed investor confidence.

The benchmark KSE-100 index climbed 1,932 points, or 1.17 per cent, to 167,449 in early session trading, continuing a bullish trend seen throughout the week.

Analysts said easing geopolitical tensions after a ceasefire in the Middle East helped lift regional markets, including Pakistan.

Across Asia, equities also traded higher, with benchmark indices in Japan, South Korea and Indonesia gaining around 2 per cent, while markets in India and Vietnam rose about 1 per cent. Stocks in Shanghai and Hong Kong were marginally higher.

Separately, the Asian Development Bank said Pakistan’s economy was showing gradual improvement but warned that risks remained.

In a report, the ADB projected Pakistan’s economic growth at 3.5 per cent in the current fiscal year, accelerating to 4.5 per cent in the next.

However, it cautioned that renewed tensions in the Middle East could increase inflationary pressures and weigh on economic stability. Inflation is expected to average 6.4 per cent in fiscal year 2026 and edge up to 6.5 per cent in fiscal year 2027.

The bank identified rising oil and gas prices as a key risk to the outlook and stressed the need for continued structural reforms to withstand external shocks.

It added that increased private investment would support growth, while improvements were expected in the construction and industrial sectors. The report also noted the possibility of a cautious easing in monetary policy by the central bank.