The Pakistan Stock Exchange (PSX) staged a sharp recovery on Tuesday, with the benchmark KSE-100 Index gaining more than 4,500 points in the opening hours. The rebound came after Monday’s steep market correction and was fueled by improved investor confidence as political uncertainty in the country eased.
According to data available on the PSX website, the KSE-100 Index opened on a bullish note and quickly climbed to an intraday high of 162,969.67 points, up by 4,526.25 points as of 10:18 am. At 10:42 am, the market hovered at 162,905.21 points, representing an increase of 4,461.79 points or 2.82% compared to the previous day’s close.
Market analysts attributed the rally to heavy buying across key sectors, supported by reduced political noise and a more stable outlook. This comes just a day after the benchmark index fell 4,654.77 points, or 2.85%, closing at 158,443.42 as investors rushed to offload positions amid heightened uncertainty.
Sectors that drove Tuesday’s rebound included automobile assemblers, cement, commercial banks, oil and gas exploration, oil marketing companies (OMCs), power generation, and refineries. Index-heavy stocks such as HUBCO, ARL, MARI, OGDC, POL, PPL, PSO, SSGC, SNGPL, and WAFI traded in the green, reflecting broad-based buying interest across the market.
Analysts noted that the rebound signals a short-term shift in investor mood but emphasized that the market’s momentum will continue to depend on political stability and economic developments in the coming weeks. Positive market sentiment was supported by expectations of steady macroeconomic progress and continued engagement with international lenders, which have been closely monitored by both domestic and foreign investors.
On the international front, Asian equities showed mixed movement on Tuesday as uncertainty persisted over upcoming US-China trade negotiations. Early optimism around a possible breakthrough deal was tempered by caution among investors, leading to flat performance in broader markets. MSCI’s Asia-Pacific index outside Japan and S&P 500 futures were flat after initial gains.
Wall Street had ended the previous session on a strong note, with its main indexes rising by as much as 2.2% overnight, led by chipmakers. The rally was driven by US President Donald Trump’s more conciliatory statements on trade tensions with China. Markets had previously been rattled after Trump announced new tariff measures, but investor nerves eased following a softer stance later in the day.
In Asia, the Hang Seng Index in Hong Kong slipped 0.4% after early gains, while China’s CSI 300 index declined 0.1%, reflecting a cautious tone ahead of key trade developments. While global sentiment remains uncertain, Pakistan’s equity market appears to be moving in the opposite direction, fueled by domestic developments and renewed investor interest.
Market experts believe that if political conditions remain stable, the KSE-100 Index could sustain its upward momentum in the coming sessions. However, they also caution that volatility may persist, with investors closely watching both domestic political signals and global market trends.
The return of bullish activity at the PSX highlights the market’s sensitivity to political shifts, with Tuesday’s rally signaling renewed confidence after a volatile start to the week.
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