KARACHI: The Pakistan Stock Exchange (PSX) bounced back on Friday, partially recouping the staggering losses suffered in the previous session due to the information minister`s assertion of an impending Indian attack.

However, border tensions appeared to ease following calls for nucleararmed neighbours to pursue peaceful resolutions to their issues. This shift helped restore investor confidence, driving the benchmark KSE 100 index to settle above the 114,000 barrier, fuelled by aggressive value hunting.

The index recovered 2,787.36 points or 2.5 per cent to close at 114,114 as border tensions eased and April inflation dropped to a six-decade low of 0.3pc from March`s 0.7pc.

Ali Najib, Sales Head at Insight Securities Ltd, said moving from fear tofundamentals, the index soared as the US State Department said it had engaged Islamabad and New Delhi at multiple governmental levels to deescalate the situation.He said the lowest-ever Consumer Price Indexbased inflation also supported the market`s bullish momentum throughout the trading.

Investors are nowexpected to focus on Monday`s Monetary Policy Committee meeting. In the first event of next week, the financial community anticipates that the central bank will cutits policy rate by 50 to 100 basis points.

The IMF Executive Board meeting is scheduled for May 9, with high expectations that the country will eas-ily secure the second tranche of $1.1 billion under the $7 billion Extended Fund Facility.

Topline Securities Ltd observed the market rebounded after remaining under pressure for two consecutive sessions. This recovery can be attributed to statements from the US administration indicating that they are working to prevent tensions between India and Pakistan from escalating into a broader regional conflict.

The top positive contribution to the index came from Unite Bank Ltd, Engro Fertiliser, Hub Power, Lucky Cement, Meezan Bank, and Habib Bank Ltd, as they cumulatively contributed 1,238 points.

However, the market activity turned subdued as the trading volume tumbled 24.15pc to 372.36 million shares, while the traded value fell 25.18pc to Rs23.28 billion day-on-day.