KARACHI: A day after a massive sell-off, bulls made a strong comeback at the Pakistan Stock Exchange (PSX) on Tuesday as easing geopolitical tensions and reduced political noise boosted investor confidence. The KSE-100 Index recorded a sharp intra-day gain of 4,817.67 points, or 3.04%, reaching 163,261.09 points at 12 PM.
Across-the-Board Buying Drives Market Recovery
Buying interest was broad-based across key sectors, including automobile assemblers, cement, commercial banks, oil and gas exploration, power generation, OMCs, and refinery stocks. Major index movers — HUBCO, Attock Refinery Limited (ARL), Mari Petroleum Company Limited (MARI), Oil and Gas Development Company (OGDC), Pakistan Oilfields Limited (POL), Pakistan Petroleum Limited (PPL), Pakistan State Oil (PSO), Sui Southern Gas Company (SSGC), Sui Northern Gas Pipelines Limited (SNGPL), and WAFI — all traded in the green, reflecting renewed investor appetite.
“Sentiment remains the same. There was a huge sell-off from mutual funds yesterday,” said Saad Hanif, Head of Research at Ismail Iqbal Securities. “The buying comes amid reduced political noise.”
The rebound follows Monday’s steep losses when the KSE-100 Index plunged by 4,654.77 points (2.85%), closing at 158,443.42 points, as investors rushed to book profits amid market uncertainty.
Global Market Sentiment Also Improving
International market cues also contributed to improved investor confidence. Asian shares opened higher on Tuesday as signs of US–China trade talks later this month offered hope of easing tensions.
However, early momentum faded, with MSCI’s Asia-Pacific index outside Japan and S&P 500 futures flattening after an initial rebound. The optimism followed remarks by Scott Bessent, U.S. Treasury Secretary, who confirmed that Donald Trump is scheduled to meet Xi Jinping in South Korea in late October.
Wall Street had closed as much as 2.2% higher overnight, led by chipmakers, after Trump signaled a softer stance on trade. Markets had tumbled last Friday when the U.S. president unexpectedly announced 100% tariffs on China, reviving fears of a renewed trade war.
Asian Equities Show Mixed Trend
Despite the early lift, the Hang Seng Index fell 0.4%, while China’s CSI 300 Index slipped 0.1% as caution returned to the region.
Back home, analysts said the KSE-100 Index recovery reflects a short-term technical rebound and bargain hunting after Monday’s sharp correction.
Outlook
Market experts believe that if geopolitical tensions remain muted and political clarity improves, the PSX may continue its upward trajectory in the coming sessions. However, global volatility — especially linked to the U.S.–China trade talks — will remain a key factor shaping market direction.
