The benchmark KSE-100 Index staged a strong recovery on Tuesday, advancing 1,225.99 points, or 0.80%, to settle at 153,966.36, as investors responded positively to easing geopolitical tensions and a drop in global oil prices.
Market activity remained robust throughout the session, with total trading volume climbing to 375.3 million shares, compared with 326.6 million in the previous session. A total of 485 companies participated in trading, of which 277 recorded gains, 141 declined, and 67 closed unchanged.
Among individual stocks, K-Electric emerged as the top volume leader, with 35.9 million shares traded, edging up by Rs0.02 to close at Rs7.64.
Despite ending the day firmly in positive territory, the session was marked by considerable volatility. The index surged to an intra-day high of 157,442.68 before profit-taking activity dragged it down to a low of 153,382.01, underscoring a cautious but resilient market tone.
Earlier in the trading day, bullish sentiment was particularly strong. By 11:34am, the index had climbed to 154,659.95, reflecting a gain of 1,919.58 points, or 1.26%, as buyers returned to the market across key sectors including banking, energy, and fertiliser. However, late-session selling pressure trimmed some of those gains as investors locked in profits.
Analysts attributed the market’s upward momentum primarily to improving external conditions, notably the decline in international oil prices, which helped ease inflation concerns and strengthened overall investor confidence. Reports suggesting that Pakistan could play a diplomatic role between the United States and Iran also supported sentiment during the session.
According to a market wrap issued by KTrade Securities, the session marked the start of futures rollover week, a period that typically introduces selling pressure. Nevertheless, the market remained steady, suggesting that last week’s weakness had largely been absorbed.
Key contributors to the index’s gains included Engro Holdings, Fauji Fertiliser Company, Lucky Cement, Systems Limited, and Hub Power Company, reflecting broad-based sector participation.
Looking ahead, analysts cautioned that Brent crude hovering near the $100 per barrel mark remains a critical risk factor for the market. While the near-term outlook is described as cautiously constructive, investors are expected to maintain a preference for defensive sectors such as banks, exploration and production firms, and high-dividend stocks, while approaching high-beta and speculative counters more selectively until clearer market direction emerges.
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