PSX gains trimmed as profit-taking limits early rally to 960 points

Buying returned to the Pakistan Stock Exchange (PSX) on Tuesday, as investor sentiment improved amid growing optimism over a potential second round of US-Iran talks aimed at resolving the ongoing conflict.

Expectations that diplomacy may progress weighed on global oil prices, easing supply concerns and providing a supportive backdrop for equity markets.

Investor confidence was further reinforced by positive external developments after the State Bank of Pakistan (SBP) confirmed the receipt of $1 billion from Saudi Arabia’s Ministry of Finance on April 20. This marks the second tranche of the recently agreed $3 billion deposit facility, supporting the country’s foreign exchange reserves and strengthening confidence in macroeconomic stability.

The rally was broad-based, with strong buying observed in key sectors including automobile assemblers, cement, commercial banks, oil and gas exploration companies, oil marketing companies (OMCs), power generation, and refineries.

Read More: PSX commences week with 1% slide

On the global front, oil prices moved lower as markets anticipate that renewed US-Iran negotiations could lead to an eventual increase in crude supply, reducing pressure on energy markets. The benchmark KSE-100 index traded firmly in positive territory as the index hovered around 174,631.25, up 2,434.55 points, or 1.41% midday.

However, profit-taking in the latter half of the session eroded a significant portion of these gains. The index touched an intra-day high of 175,298.12 and a low of 172,837.80 before settling at 173,155.79, up by 959.09 points or 0.56% at close.

“Investors are waiting for the outcome of the US-Iran talks on reaching a deal during this week in Islamabad,” AKD Securities Director Research Mohammed Awais Ashraf told The Express Tribune.

He said any positive developments are likely to drive market recovery, particularly given the improved diplomatic positioning of Pakistan and a fully funded external position after receiving $3 billion from Saudi Arabia and the issuance of $750 million Eurobond, along with a current account surplus of $1.0 billion in March 2026.

Also Read: PSX surges over 4,000 points to close near 174,000 mark

Further, inflation is likely to remain at 9.6% in April 2026 despite a significant increase in fuel prices due to a moderate increase in food prices, which means that the Real Interest rates are still positive, Ashraf predicted.

Overall trading volume decreased to 1.16 billion against Monday’s volume of 1.29 billion. Shares of 489 companies were traded. Of these, 279 rose, 165 declined, and 45 remained unchanged. Cnergyico PK topped the volume chart with a trade of 83.7 million shares.