Pakistan’s benchmark KSE-100 Index recovered part of its previous session losses, supported by buying in major stocks and a relatively stable domestic macroeconomic backdrop.
The KSE-100 Index staged a strong recovery on Tuesday, gaining 1,421 points, or 0.85%, to close at 169,392, following a sharp 2,541-point decline in the previous session.
The rebound came after heightened geopolitical tensions and international crude oil prices above US$100 per barrel had triggered heavy selling in the market. Investors remained cautious over the potential impact of higher oil prices on Pakistan’s import bill, inflation and external account.
However, the market found some support from recent positive domestic developments. The State Bank of Pakistan’s decision to keep the policy rate unchanged at 11.5% provided stability for investors, while Pakistan’s recent US$3 billion Eurobond issuance and improvement in foreign exchange reserves to around US$21.4 billion also supported sentiment.
The recovery was led by several major index-heavy stocks. UBL, FFC, LUCK, BAFL and PSEL emerged among the key positive contributors, collectively adding approximately 640 points to the benchmark index.
Despite the broader recovery, some stocks remained under pressure. MEBL, JVDC and SAZEW were among the major negative contributors, collectively weighing down the KSE-100 by around 179 points.
Market activity was relatively subdued compared with the previous session. Total traded volume stood at approximately 372 million shares, while the value of shares traded was around PKR17.2 billion.
The sharp rebound indicates that investors continued to look for opportunities following the previous session’s sell-off, although concerns over elevated international oil prices and geopolitical developments remain key risks for the market.
Going forward, investor sentiment is likely to remain sensitive to movements in crude oil prices and developments surrounding regional tensions. At the same time, stronger foreign exchange reserves, continued financial inflows and the stable monetary policy stance could provide some support to equities.
The KSE-100’s latest recovery therefore marks a partial reversal of the previous day’s losses, but market direction is expected to remain dependent on both global geopolitical developments and Pakistan’s domestic economic indicators.