Bulls make strong comeback at PSX as KSE-100 closes near 184,000 mark

Bulls made a strong comeback to the trading floor at the Pakistan Stock Exchange (PSX) on Tuesday, as the benchmark KSE-100 closed near 184,000 points. 

As per the PSX website, the market opened on a positive note, but the momentum quickly reversed as bears took control of the trading floor. The KSE-100 Index plunged by 1,794 points, reaching a low of 180,589.95, driven by widespread selling and profit-taking across key sectors. 

Major sectors such as automobile assemblers, commercial banks, fertiliser companies, oil and gas exploration firms, OMCs, power generation, and refineries experienced significant declines. 

This sharp decline followed a day of aggressive profit-taking on Monday, as investors cashed in after last week’s robust gains. The KSE-100 Index closed at 182,384.15 points, down by 2,025.52 points or 1.1%.

The market closed at 183,951.50 points, an increase of 1567.36 points, or 0.86%, from the previous close of 182,384.14 points. 

Meanwhile, global markets saw a boost, with Japanese shares surging due to optimism surrounding AI stocks, while a cloud of uncertainty over the U.S. Federal Reserve’s independence kept gold prices rising. 

Oil prices also climbed as tensions in Iran raised concerns about supply disruptions, and U.S. President Donald Trump warned of a 25% tariff on trade with countries doing business with Iran.

In the Asian markets, Japan’s Nikkei bounced back from a holiday break, jumping 3.4% to record highs, supported by a weak yen and speculation about fiscal stimulus. South Korea and Taiwan also reached all-time highs, while Chinese blue-chip stocks hit a four-year peak. 

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.8%, setting a new record. European markets showed slight gains, with EUROSTOXX 50 futures adding 0.2%, DAX futures up 0.1%, and FTSE futures flat.

In the U.S., S&P 500 futures dipped 0.2%, and Nasdaq futures eased 0.3% ahead of a crucial U.S. consumer price index report for December. Analysts forecast core inflation to rise to 2.7%, with Goldman Sachs predicting it could reach 2.8%.