PSX gains 1,200 points in early trade

The Pakistan Stock Exchange (PSX) staged a strong recovery on Tuesday, with the benchmark KSE-100 Index gaining nearly 1,200 points during early trading

The Pakistan Stock Exchange (PSX) staged a strong recovery on Tuesday, with the benchmark KSE-100 Index gaining nearly 1,200 points during early trading as investors returned to the market after the previous session’s sharp decline.

By 9:40am, the KSE-100 Index was trading at 179,604.94 points, up 1,190.15 points, or 0.67%, reflecting renewed buying interest across several heavyweight sectors.

The rally was broad-based, with investors accumulating shares in automobile assemblers, cement manufacturers, commercial banks, oil and gas exploration companies, oil marketing companies (OMCs), power generation firms and refinery stocks.

Among the major contributors to the index’s advance were Oil and Gas Development Company (OGDC), Mari Energies (MARI), Pakistan Oilfields Limited (POL), Pakistan Petroleum Limited (PPL), Hub Power Company (HUBCO), Attock Refinery Limited (ARL), Pakistan State Oil (PSO), Sui Southern Gas Company (SSGC) and United Bank Limited (UBL), all of which traded in positive territory during the opening session.

The strong start marked a turnaround from Monday’s trading, when the stock market came under heavy selling pressure as investors reacted to renewed geopolitical uncertainty over the weekend. Widespread profit-taking erased gains made in the previous session, dragging the benchmark index down by 1,156.47 points, or 0.64%, to close at 178,414.80 points.

Market participants said Tuesday’s recovery reflected improved investor confidence, with bargain hunters taking advantage of lower share prices after Monday’s decline. Analysts also noted that easing concerns in global energy markets and relatively stable international equities helped improve sentiment.

Internationally, Asian stock markets traded mixed as investors approached the end of a strong quarter while monitoring global economic developments and geopolitical risks.

Japan’s Nikkei index remained largely unchanged in early trading but stayed on track for a record quarterly gain of more than 36%. South Korea’s KOSPI index slipped around 1% as investors booked profits following a powerful rally driven by semiconductor stocks, although the benchmark remains set for a quarterly gain of nearly 65%.

Global energy markets also appeared calmer, with Brent crude trading near $72.49 per barrel as fears of a prolonged disruption to oil supplies eased despite continued uncertainty surrounding the fragile ceasefire between the United States and Iran.

Meanwhile, Wall Street ended higher overnight, providing support to investor sentiment across Asia. US stock futures were broadly flat during Tuesday’s Asian session as traders awaited key economic data expected later this week.

The US dollar continued its recent strength, supported by expectations that the Federal Reserve could maintain higher interest rates for longer amid resilient economic growth and persistent inflation.

The stronger dollar pushed the Japanese yen to its weakest level in nearly four decades at around 162.41 per dollar, increasing speculation that Japanese authorities may intervene in currency markets. Gold prices also remained under pressure, heading for their biggest quarterly decline in more than a decade.