PSX recovers strongly as KSE-100 gains 1,900 points by closing

Buying across key sectors, positive signals from US lift benchmark index past 148,700

KARACHI:

Following a day of heavy selling, the Pakistan Stock Exchange (PSX) staged a strong rebound on Tuesday, with improved investor sentiment helping the market regain its footing. Trading began on a firm note and stayed in positive territory throughout, signalling renewed confidence among participants. 

The recovery was driven by strong activity across key sectors, including automobile assemblers, power generation and refining, cement, commercial banks, oil and gas exploration companies, and oil marketing firms. Investor sentiment was further supported by easing geopolitical tensions in the Middle East, with optimism growing after developments suggested potential de-escalation.

Market players cashed in on improving global developments, particularly after US President Donald Trump indicated that direct talks with a more moderate leadership in Iran were making “significant progress”, adding to investor optimism.

During the day, the index touched an intraday high of 150,225.63 and a low of 147,743.68, showing a healthy trading range. The benchmark KSE-100 index finally added handsome gains of 1,900.34 points or 1.29% to the previous session’s level and settled at 148,743.32. 

“KSE-100 staged a rebound on Tuesday, closing at 148,743 points, up 1,900 points (+1.29% DoD), as the market finally caught a breath after the recent heavy slide,” KTrade Securities equity trader Ahmed Sheraz commented. The session opened strong and maintained a positive tone throughout, although some profit-taking emerged in the latter half, participation improved considerably. 

Read: PSX tumbles 4,864 points in volatile session as KSE-100 closes below 147,000

The upside was largely fuelled by a cooling in global oil sentiment after remarks from Donald Trump, hinting at a potential near-term resolution to the ongoing geopolitical tensions. The narrative around avoiding escalation in the Strait of Hormuz helped ease global risk perception. This translated into slightly firmer US cues and a mixed but stable Asian backdrop, which PSX absorbed positively, he added.

Market performance was led by blue-chip names, with strong contributions coming from National Bank, Meezan Bank, Lucky Cement, Oil & Gas Development Company, Mari Energies, Habib Bank, and Hub Power, as buying interest returned to index-heavy sectors. Gains were broad-based, with commercial banks, E&Ps, cement, and power sectors all closing in the green, signalling a tentative restoration of confidence.

However, the undertone remained cautious. Brent crude, still hovering near elevated levels ($107–108/bbl), continues to act like a pressure valve on the market.

Looking ahead, tomorrow’s CPI print becomes the next key trigger. If inflation breaches the 8–9% range, it could reignite expectations of a rate hike in the State bank of Pakistan’s upcoming Monetary Committee Meeting, potentially capping upside.

For now, the playbook stays disciplined, sticking with dividend-yielding names, particularly banks and E&Ps, while staying light on cyclicals. The market bounced on Tuesday, but conviction will need macro support to turn this into a sustained recovery, Sheraz wrote.

Overall trading volume decreased to 434.9miion shares against Monday’s tally of 529.1million. The value of shares stood at Rs22.5billion. Shares of 479 companies were trade. Of these, 281 closed higher, 137 fell and 61 remained unchanged. K-Electric  was the volume leader with trading in 47million shares, rising Rs0.27 to close at Rs6.89.