The Pakistan Stock Exchange (PSX) witnessed a dramatic rally on Tuesday, with the benchmark KSE-100 index posting its second-highest single-day gain on a closing basis. The surge was driven largely by easing geopolitical tensions in the Middle East, particularly the temporary ceasefire between Iran and Israel, which restored investor confidence across regional markets.
At the start of the trading session, market momentum was evident. By 9:35 AM, the KSE-100 index had already climbed 4,603 points, marking a 3.96 percent increase and setting the tone for an exceptionally bullish day. As the day progressed, optimism gained further traction. At 12:50 PM, the index reached an intra-day high of 122,725, up 6,558 points or 5.6 percent.
By market close, the index stood at 122,246 points, recording an impressive gain of 6,079 points, or 5.23 percent, from the previous session. According to data shared by Arif Habib Limited, this ranks as the second-largest single-day gain in terms of points for the KSE-100 index on a closing basis.
Investor activity was also significantly elevated. A total of 804,779,730 shares changed hands during the day, reflecting renewed interest in equities. The overall market turnover stood at Rs. 37.6 billion, signaling strong buying across sectors.
Out of 477 listed companies that participated in Tuesday’s session, 407 registered gains, while only 35 declined. The share prices of 35 firms remained unchanged. The sharp rally suggests that investors were eager to re-enter the market following a prolonged period of geopolitical and economic uncertainty.
Among the top traded stocks, WorldCall Telecom (WTL) led with 65.3 million shares, rising by Rs. 0.11 to close at Rs. 1.46. K-Electric (KEL) followed closely, trading 54.3 million shares and gaining Rs. 0.35 to finish at Rs. 5.28. Cnergyico (CNERGY) also saw high volumes with over 37 million shares exchanged, increasing by Rs. 0.53 to Rs. 7.18.
Other notable performers included PIA Holding Company (PIAHCLA), which rose Rs. 1.54 to settle at Rs. 21.80 on volumes of nearly 30 million shares. Sui Southern Gas Company (SSGC) saw gains of Rs. 3.14 to close at Rs. 41.90, while Fauji Cement Company Limited (FCCL) advanced by Rs. 4.06, ending the session at Rs. 44.61.
Analysts believe the rally reflects a broader relief rally triggered by geopolitical developments rather than domestic economic reforms. However, the massive participation and positive sentiment could provide the momentum needed to sustain investor interest in the short term.
While regional calm played a pivotal role, local investors are expected to keep an eye on the upcoming fiscal measures, monetary policy directions, and inflationary outlook to gauge long-term market trajectory. For now, the PSX’s remarkable rebound marks a much-needed moment of relief for both institutional and retail investors navigating an uncertain economic landscape.