PSX rebounds, surges over 4,000 points as bulls return

ISLAMABAD: The Pakistan Stock Exchange (PSX) witnessed a powerful rebound on Tuesday, with the benchmark KSE-100 Index jumping by more than 4,000 points during the opening minutes of trading, restoring multiple key levels and signaling renewed investor optimism.

After six consecutive sessions of heavy losses, trading at the PSX began on a bullish note. At 9:55 AM, the KSE-100 Index was recorded at 162,474.10 points, marking a rise of 4,030.68 points (2.54%).

The surge restored the 159,000, 160,000, 161,000, and 162,000-point thresholds, which were breached during last week’s sell-off. The strong opening was fueled by investor confidence following signs of political stability and a slight easing in geopolitical tensions.

Analysts observed broad-based buying across key sectors such as automobile assemblers, cement, commercial banks, oil and gas exploration, OMCs, power generation, and refineries.

Prominent gainers included HUBCO, ARL, MARI, OGDC, POL, PPL, PSO, SSGC, SNGPL, and WAFI, all trading in the green.

Saad Hanif, Head of Research at Ismail Iqbal Securities, told Business Recorder that the buying spree was driven by “reduced political noise” and improved confidence after Monday’s sharp correction.

The strong rebound followed a turbulent session on Monday when the market plunged by 4,654.77 points (2.85%), closing at 158,443.42 points. The sell-off was mainly attributed to widespread profit-taking and weak investor sentiment amid political uncertainty.

Tuesday’s rally suggests that traders are viewing the dip as a buying opportunity, especially in value stocks that had corrected sharply over the past week.

Global cues also played a role in shaping sentiment. Asian markets saw mixed movements on Tuesday amid cautious optimism about upcoming US-China trade talks.

Read more: PSX Soars to Record Highs Amid IMF Talks, Foreign Optimism

While early gains in Hong Kong and mainland China faded, Wall Street’s strong overnight performance offered some support to emerging markets.

The S&P 500 had closed 2.2% higher, led by tech and chip stocks, after US President Donald Trump adopted a softer tone toward China.
However, uncertainty remains, as global investors await more clarity on potential tariff rollbacks following last week’s abrupt 100% tariff announcement.

Market experts believe the PSX’s recovery could continue if political calm persists and global markets stabilize. However, they warn that volatility may return if geopolitical or policy uncertainties resurface.

The benchmark’s sharp swing underscores the sensitivity of investor sentiment to both local and international developments — a reminder that Pakistan’s equity market remains reactive to fast-moving news cycles.