The Pakistan Stock Exchange experienced a rollercoaster session on Tuesday as the KSE-100 index battled significant intraday swings driven by escalating tensions in the Middle East. Market sentiment was initially dampened by a fragile and deteriorating situation between the US and Iran, following reports of maritime clashes in the Strait of Hormuz and missile strikes directed at the UAE. This regional instability triggered a wave of nervousness among local investors, leading to a sharp gap-down opening. However, the benchmark index managed to stage a resilient recovery during the final hour of trading, as value-hunters stepped in to capitalize on lower price levels, marking the second consecutive day of positive finishes.
According to market data, the KSE-100 index touched an intraday low that saw a massive swing of over 1,400 points before steady buying interest pulled it back into positive territory. By the close of the session, the index settled at 164,742.47, reflecting a gain of 793.53 points or 0.48 percent. Despite this recovery, several index-heavyweights faced significant selling pressure. Major players such as Hub Power, United Bank, Lucky Cement, Indus Motor, and Kohinoor Textile Mills collectively shaved 167 points off the index, highlighting the cautious approach taken by institutional investors toward large-cap stocks during periods of geopolitical uncertainty.
The intensity of the market’s volatility was mirrored by a notable decline in participation. Trading activity saw a significant contraction, with total volumes plunging by nearly 35 percent to 453 million shares. Similarly, the total traded value dropped to Rs22.7 billion, a sharp contrast to more active sessions. Market analysts noted that while the recovery was constructive, the thin volumes suggested that many retail and institutional investors preferred to stay on the sidelines until the international political situation becomes clearer. The Bank of Punjab emerged as the volume leader for the day, highlighting a shift in interest toward specific banking sector equities amid the broader fluctuations.
On the macroeconomic front, fresh data released during the session presented a challenging outlook for the country’s fiscal health. Pakistan’s trade deficit widened more than anticipated in April, reaching $4.07 billion. This expansion was fueled by a 7.46 percent year-on-year increase in imports, which surged to $6.55 billion for the month. On a month-on-month basis, the import bill grew by a staggering 28.41 percent. For the first ten months of the current fiscal year (10MFY26), the cumulative trade deficit has expanded by over 20 percent, reaching $31.98 billion compared to $26.59 billion in the same period last year. This widening gap continues to put pressure on the national currency and foreign exchange reserves.
In a move to calm fears regarding energy security, the Petroleum Ministry informed Deputy Prime Minister Ishaq Dar that the country currently maintains sufficient reserves of petrol, oil, and lubricants to last until the third week of June. This assurance comes at a critical time as global supply chains face potential disruptions due to the ongoing strife in the Gulf. Meanwhile, the industrial sector showed mixed results; total cement despatches rose by 11.14 percent in April to 3.89 million tonnes. While domestic demand saw a robust 20.17 percent increase, export volumes suffered an 18.22 percent decline, indicating that while local construction activity is picking up, international market penetration remains a hurdle for Pakistani manufacturers in the current global climate.
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