PSX rebounds as KSE-100 gains 2,593 points

PSX rebounds as KSE-100 gains 2,593 points

The Pakistan Stock Exchange (PSX) staged a strong recovery on Tuesday, with the benchmark KSE-100 Index gaining 2,592.79 points, or 1.56%, to close at 168,460.11, as investors returned to the market amid improving political and global economic signals.

The market opened cautiously after the previous session’s heavy sell-off and margin-driven liquidation. However, buying interest gradually strengthened as investors responded positively to signs that political tensions could ease and that the government remained open to dialogue with the opposition.

Investor sentiment received a boost after Prime Minister Shehbaz Sharif urged the Pakistan Tehreek-e-Insaf (PTI) to call off its long march and abandon what he described as confrontational politics. The prime minister warned that continued protests could hurt economic activity and damage Pakistan’s international image.

The possibility of negotiations and a reduction in political uncertainty encouraged investors to rebuild positions in major sectors. The KSE-100 moved between an intraday high of 168,626.18 and a low of 165,651.68 before ending the session close to its upper range.

Strong buying emerged across automobile assemblers, cement companies, commercial banks, oil and gas exploration firms, oil marketing companies, power producers and refineries. Engro Holdings, United Bank Limited (UBL), Hub Power, Habib Bank Limited (HBL), Oil and Gas Development Company (OGDC) and Mari Energies were among the prominent stocks that closed in positive territory.

Analysts said the recovery reflected an improvement in both domestic and international market conditions. Investors also took encouragement from a decline in global oil prices, which eased concerns over external-sector pressures and energy costs.

International crude prices fell on Tuesday as resilient oil exports from the Middle East and a G7-backed release of emergency strategic stockpiles reduced immediate concerns about supply shortages. Brent crude slipped below the $100-per-barrel mark to around $98, while improving conditions around the Red Sea also helped ease some supply-chain concerns.

AKD Securities Director Research Mohammed Awais Ashraf said the combination of softer oil prices and the government’s willingness to engage with the PTI had improved market sentiment. He noted that the easing of domestic political and external pressures encouraged fresh buying in several key sectors.

KASB KTrade’s Ahmed Sheraz said the market initially remained subdued following Monday’s sharp decline but gradually recovered as domestic and global cues improved. He said buying spread across commercial banks, oil and gas, cement, investment companies and the power sector.

Geopolitical developments also provided some relief to investors. Hopes for possible US-Iran engagement increased after US President Donald Trump indicated that Washington remained open to direct talks, reducing some immediate concerns over a wider regional escalation.

The latest recovery marks a sharp reversal from the previous session’s losses and indicates that investors remain highly responsive to political developments, international oil prices and geopolitical risks. Market participants will now closely monitor progress on political talks and global energy markets for further direction.