The Pakistan Stock Exchange (PSX) staged a robust recovery on Tuesday, with the benchmark KSE-100 Index surging 2,592.79 points, or 1.56%, to settle at 168,460.11. The powerful rebound was fueled by broad-based buying as domestic political tensions eased and international oil prices softened.
Investor sentiment experienced a marked improvement after Prime Minister Shehbaz Sharif called on the Pakistan Tehreek-e-Insaf (PTI) to abandon its agitational politics and call off its planned long march. Warning that ongoing protests would damage economic growth and the country’s international standing, the premier’s conditional offer for dialogue provided immediate relief to a market that had been heavily weighed down by political uncertainty.
“The decline in international oil prices, along with the government’s indication that it remains open to negotiations with the PTI to end the long march, has helped improve investor sentiment.” — Mohammed Awais Ashraf, Director Research, AKD Securities
Following a heavy sell-off and margin-driven liquidation on Monday, the KSE-100 index initially remained subdued on thin volumes. However, as improving domestic and global cues materialized, the index recovered strongly from an early session low of 165,651.68, ultimately hitting an intraday high of 168,626.18.
According to market wraps from KASB KTrade, the broad-based buying was highly visible across commercial banks, oil and gas, cement, investment banks, automobile assemblers, and the power sector. Notable index heavyweights including Engro Holdings, UBL, Hub Power, HBL, Oil & Gas Development Company (OGDC), and Mari Energies all closed the session firmly in the green.
Global Cues: Brent Falls Below $100 Amid Easing Tensions
The domestic recovery was further supported by favorable global commodities data. International oil prices eased on Tuesday, with Brent crude falling below $100 to approximately $98 per barrel. The decline was attributed to resilient Middle Eastern crude exports, improving Red Sea conditions, a G7-backed strategic emergency stockpile release, and baseline price support from Saudi producers. Furthermore, indications from President Donald Trump that Washington remains open to direct talks with Iran helped reduce broader geopolitical risk premiums, capping further market volatility.
“Brent crude fell below $100 to around $98 per barrel amid a G7 emergency stockpile release and easing geopolitical risks following hopes of US-Iran dialogue.”
Moving forward, analysts predict the rally could extend if political noise and global oil prices remain contained, though a brief period of market consolidation following Tuesday’s sharp rebound would be considered a healthy technical correction.
Trading volume moderated slightly to 432 million shares, down from 441.8 million on Monday, while the total traded value stood at Rs20.1 billion. In the ready market, shares of 496 companies were traded, with a commanding 314 closing higher, 147 recording losses, and 35 remaining unchanged. Cnergyico PK led the volume charts, with 55.1 million shares changing hands as the stock gained Rs0.72 to close at Rs12.93.