Pakistan’s benchmark index rebounds 0.47% as banking, energy and oil stocks support gains, while auto shares rise on draft policy optimism.

Karachi, October 21, 2026: The KSE-100 Index staged a recovery on Wednesday, gaining 779 points, or 0.47%, to close at 165,931 after two consecutive sessions of losses.

The benchmark index traded between an intraday low of 164,732 and a high of 166,242, as selective buying emerged at lower levels.

The rebound reflected renewed investor interest following recent selling pressure. However, market sentiment remained cautious amid macroeconomic uncertainty, elevated international oil prices and persistent geopolitical concerns.

UBL, HUBC, HBL, OGDC and MARI were the leading contributors to the index’s gains, collectively adding approximately 493 points.

The automobile sector remained in focus, closing in positive territory amid optimism surrounding the new draft Auto Policy. Expectations regarding the proposed policy encouraged investor interest in automobile stocks.

In contrast, the refinery sector remained under pressure following a reported reduction in the high-speed diesel (HSD) crack spread from US$41.89 per barrel to US$38 per barrel for 90 days.

Market activity remained notable during the session. Regular-market trading volume reached approximately 378 million shares, while the total traded value stood at around Rs21.2 billion.

Despite the recovery, investors continued to monitor domestic economic developments, international oil prices and geopolitical risks for further direction. The session’s gains offered some relief after two successive declines, although broader market sentiment remained sensitive to macroeconomic and sector-specific developments.