The Pakistan Stock Exchange (PSX) witnessed a marginal recovery on Tuesday, as the benchmark KSE-100 Index inched up by 111.78 points, or 0.09%, to close at 118,332.90. The modest gain followed a sharp decline of nearly 882 points on Monday, reflecting a tentative return of investor confidence amid ongoing fiscal uncertainty.
Market activity remained subdued throughout the session, with investors adopting a cautious stance in the absence of clear catalysts. “A wait-and-see approach dominated sentiment, with participants largely staying on the sidelines in the absence of clear market moving triggers,” said brokerage house Ismail Iqbal Securities in a note.
The market’s recovery came a day after investors reacted strongly to news of a delay in the federal budget announcement and uncertainty surrounding the International Monetary Fund’s (IMF) approval of Pakistan’s circular debt reduction plan. On Monday, the KSE-100 Index had shed 881.55 points, or 0.74%, to close at 118,221.12—its lowest level in over two weeks.
In sectoral performance, trading remained mixed, with limited activity across key index-heavy stocks. Among the top gainers were RUBY, UCAPM, FPRM, and DWTM, while notable losers included NCMLNC, AKDHL, LSEFSL, and PMRS. The most actively traded stocks were K-Electric (KEL), WorldCall Telecom (WTL), Pakistan Telecommunication Company (PTC), and Telecard Limited (TELE).
On the global front, Asian equities declined slightly, while US futures moved higher after former US President Donald Trump delayed proposed 50% tariffs on European Union imports. Meanwhile, the US dollar remained under pressure, on track for its fifth consecutive monthly loss.
Investors at the PSX are now closely monitoring developments ahead of the federal budget for FY26, expected to be presented on June 10. Speculation around new tax measures and structural reforms remains a key source of uncertainty, continuing to influence short-term market direction.
