The Pakistan Stock Exchange (PSX) witnessed a strong recovery on Tuesday as investor sentiment rebounded sharply, pushing the benchmark KSE-100 Index up by 808 points, or 0.7%, to close at 114,872. This notable uptick comes after a volatile start to the session that saw the index plunge by over 1,100 points in early trading, largely due to pressure from leveraged positions.
According to a market note by brokerage house Topline Securities, the day began with heavy selling pressure, primarily triggered by margin calls and profit-taking among leveraged investors. The KSE-100 Index dropped sharply by 1,128 points during the initial trading hours, reflecting caution and uncertainty in the market. However, this weakness proved short-lived as institutional investors and value seekers stepped in to capitalize on lower stock valuations, prompting a swift turnaround in the second half of the session.
The rebound was led by strong performances in key heavyweight stocks. Notably, Engro Polymer and Chemicals (ENGROH), Mari Petroleum (MARI), Systems Limited (SYS), MCB Bank, and Sui Northern Gas Pipelines (SNGP) collectively contributed around 760 points to the day’s total index gain. Their leadership in the market recovery highlights investor confidence in fundamentally strong and liquid stocks, especially amid broader economic developments.
Overall market activity also saw a slight dip in volume but a meaningful increase in traded value, indicating targeted buying. Total shares traded during the session stood at approximately 409.93 million, slightly lower than the previous session’s 417.67 million. However, the value of these shares rose significantly to Rs29.06 billion compared to Rs26.12 billion a day earlier, pointing to a shift toward higher-priced, quality stocks.
The market breadth reflected a largely bullish tone, with 444 companies actively trading. Among them, 211 recorded gains, 182 sustained losses, and 51 remained unchanged, showcasing a healthy level of participation and buying interest across sectors.
In parallel with the market’s recovery, a key development on the macroeconomic front helped bolster sentiment. The International Monetary Fund (IMF) officially announced that its Executive Board would meet on May 9 to discuss Pakistan’s first review under the ongoing $7 billion bailout program. Additionally, the board is expected to deliberate on a new $1.3 billion arrangement under the IMF’s climate resilience support program. This announcement was widely interpreted as a signal of continued international support and fiscal stability, encouraging investors to revisit equity markets with renewed confidence.
The optimism on display at the PSX today signals a broader market belief that the worst of the recent volatility may be behind. The combination of easing margin-related selling, strategic accumulation by long-term investors, and positive developments on the IMF front created a favorable backdrop for equities.
As the next few weeks unfold, market participants are expected to keep a close eye on IMF-related proceedings and macroeconomic indicators. Meanwhile, today’s rally reflects the resilience of Pakistan’s equity market and its sensitivity to both global financial cues and domestic economic policy directions.