PSX makes vibrant recovery on oil price fall

KSE-100 soars 9,697 points as Trump's war-end remarks spark optimism

KARACHI:

The Pakistan Stock Exchange (PSX) made a dramatic comeback on Tuesday as equities rebounded sharply and gained nearly 9,700 points after a heavy sell-off in the previous session.

Robust buying swept the market from the opening bell, pushing the KSE-100 index up by 9,304 points (+6.34%) by 9:32 am and triggering the third market halt for the current month.

The PSX announced "all TRE Certificate holders are informed that due to a 5% increase in the KSE-30 index from the previous trading day's close, a market halt has been triggered as per regulations and all equity-based markets have been suspended accordingly."

As a result of the halt, all outstanding orders were cancelled automatically by the system and all equity-based markets would re-open as per schedule, it said. Later, the rally continued at full pace as investors continued to capitalise on the rebound. During the day, the index moved between the intra-day high of 158,354 and low of 155,295. At close, the benchmark KSE-100 index recorded a surge of 9,696.97 points, or 6.62%, and settled at 156,177.12.

"Following Monday's sharp sell-off triggered by a spike in oil prices and escalating geopolitical tensions, the market opened with a strong rebound on Tuesday as the KSE-100 surged 9,728 points before trading was halted," KTrade Securities equity trader Ahmed Sheraz told The Express Tribune.

Sentiment improved after oil prices sharply corrected overnight to below $90 per barrel, easing fears of a prolonged supply disruption, he said. Additional support came from signals from Trump, indicating that the war with Iran was "pretty much" complete, along with the State Bank of Pakistan's decision to keep the policy rate unchanged.

Positive cues from the US and Asian markets helped restore risk appetite at the local bourse. However, the situation remains fluid as tensions in the region persist and the trajectory of oil prices will remain a key factor shaping the market's direction, Sheraz anticipated.

JS Global analyst Mubashir Anis Naviwala commented that the KSE-100 index surged 9,697 points (+6.62%), reflecting a sharp rebound in investor sentiment and aggressive buying across major sectors. Optimism improved after the US president signalled the Middle East conflict may end soon.

The index quickly gained over 9,700 points during early trading hours. Following the surge of more than 6%, a market halt was triggered, temporarily suspending trading. Commercial bank, exploration & production, fertiliser and power sectors led the rally in a session that marked a strong technical rebound after panic selling a day ago, Naviwala said.

Arif Habib Limited (AHL) reported that Pakistan's market saw aggressive re-pricing to higher levels with the trading halted due to a robust rise. A total of 98 stocks advanced while only two declined, where Fauji Fertiliser (+8.51%), Engro Holdings (+10%) and United Bank (+6.69%) contributed the most to the index gains.

Furthermore, the US president stated that the war against Iran was very much complete, lifting global sentiment. Domestically, the bidding for 5G spectrum was underway, where six bands were offered. The first stage of the auction included five rounds while the second stage would resume after a day's break, it said.

On the corporate front, Lotte Chemical (+10%) plans to bid for a 56.19% stake in Engro Polymer & Chemicals (+10%) following the board's approval to kick off due diligence. The KSE-100 showed a solid reaction from below the 200-day moving average, indicating strong demand below 150,000 points and positive market prospects, AHL remarked.

"After Monday's panic tone, the local bourse witnessed a powerful comeback as confidence swiftly returned to the market," Topline Securities said in its report. Bulls charged aggressively from the opening bell, triggering a temporary market halt amid intense buying activity.

Momentum remained strong throughout the session, pushing the index to an impressive intra-day high of 11,873 points, before settling at 156,177, up 9,697 points. The rally followed the State Bank's decision to keep the policy rate unchanged at 10.5%, which reassured investors and revived risk appetite.

Sentiment was further lifted by improving global markets, while falling oil prices, after comments from Trump suggesting the ME conflict may end soon, helped calm fears of prolonged supply disruption.

Index-heavy constituents including Fauji Fertiliser, Engro Holdings, UBL, Hub Power and Meezan Bank emerged as major gainers, collectively adding 3,621 points, Topline added.