KARACHI — The Pakistan Stock Exchange (PSX) experienced a sharp recovery on Tuesday, with the benchmark KSE-100 Index gaining 7,032.60 points, or 4.44%, following a heavy sell-off the previous day.
Investor sentiment improved amid signs of easing geopolitical tensions and reduced political noise, driving the index to an intra-day high of 165,866.77 points. At close, the KSE-100 settled at 165,476.02.
Topline Securities noted that this was the second-highest single-day gain in recent history, following a 10,123-point surge recorded on May 12, 2025.
Across-the-board buying interest was observed in key sectors, including automobile assemblers, cement, commercial banks, oil and gas exploration companies, OMCs, power generation, and refineries. Index-heavy stocks such as HUBCO, ARL, MARI, OGDC, POL, PPL, PSO, SSGC, SNGPL, and WAFI all closed in the green.
Arif Habib Limited (AHL) attributed the rally to easing geopolitical and domestic political tensions, coupled with renewed investor interest as the results season began.
Analysts suggested that market momentum remains dependent on political stability and the government’s commitment to implementing the IMF programme.
In a key development, Finance Minister Muhammad Aurangzeb met with Jihad Azour, Director of the IMF’s Middle East and Central Asia Department, during the IMF and World Bank Annual Meetings in Washington, reaffirming their commitment to Pakistan’s reform agenda and macroeconomic discipline.
On Monday, the PSX had suffered a sharp decline, with the KSE-100 Index falling 4,654.77 points, or 2.85%, due to widespread profit-taking and weak investor sentiment.
