PSX recovers nearly 800 points to close higher despite volatile trading

The Pakistan Stock Exchange (PSX) witnessed volatile trading on Tuesday, with investors turning cautious amid rising external risks and domestic economic concerns, but it closed with a gain of nearly 800 points.

According to the PSX website, the market opened weak, with the KSE-100 Index dropping to 162,532.98 and losing more than 1,300 points in early trade. The session remained volatile, with the index moving within a range of 162,532.98 to 164,920.34 as selling pressure persisted for most of the day.

However, momentum shifted in the latter half of the session, with buying interest emerging around 2:30 pm. The index recovered into positive territory and closed at 164,742.47, up 793.53 points or 0.48% from the previous close.

Market participants said investors remained cautious amid domestic and external pressures, assessing the impact of a widening trade deficit and ongoing geopolitical tensions in the Strait of Hormuz.

Data released by the Pakistan Bureau of Statistics showed the country’s trade deficit crossed $4 billion in April 2026 and widened 20% to $32 billion during the first 10 months of the current fiscal year due to higher imports.

Global developments also influenced sentiment, as the United States and Iran exchanged attacks in the Gulf while competing over control of the Strait of Hormuz, a key route for energy shipments.

In the previous session, the PSX had closed higher, with the KSE-100 Index gaining 954.77 points or 0.59% to settle at 163,948.94, although early gains were partially eroded by rising geopolitical uncertainty and volatility in oil markets.

Asian stocks also fell on Tuesday while oil prices retreated after the previous day's surge but remained well above $100 a barrel, as the U.S. and Iran traded blows over the Strait ​of Hormuz, leaving a fragile truce hanging in the balance.

Traders also had their eyes on the yen after the Japanese currency briefly jumped in the ‌previous session, stoking speculation of another round of intervention from Tokyo.

EUROSTOXX 50 futures were down 0.3% and FTSE futures shed 1%, while DAX futures lost 0.4%.

In Asia, MSCI's broadest index of Asia-Pacific shares outside Japan dropped 0.6% in thin trade, with markets in Japan and South Korea closed for a holiday. Hong Kong's Hang Seng Index lost more than 1% while China's CSI300 blue-chip index was ​little changed.

The U.S. and Iran launched new attacks in the Gulf on Monday as they wrestled for control over the Strait of Hormuz with duelling maritime blockades, ​not long after U.S. President Donald Trump launched a new effort to get stranded tankers and other ships through the vital ⁠energy-trade chokepoint.

Maersk said the Alliance Fairfax, a U.S.-flagged vehicle carrier operated by its Farrell Lines subsidiary, exited the Gulf via the Strait of Hormuz accompanied by U.S. military assets ​on Monday.

Still, the renewed hostilities jolted markets and served as a stark reminder that the war in the Middle East was far from over.

Brent crude futures eased 93 ​cents, or 0.8%, to $113.51 per barrel at 0719 GMT after settling up 5.8% on Monday. 

​U.S. West Texas Intermediate (WTI) crude fell $2.16, or 2%, to $104.26, after gaining 4.4% in the ⁠previous session.